Corporate Risk & Finance

Risk analysis identifies which customers or prospects are the most likely to represent some form of risk to your business. Once identified and defined, a plan can be developed to manage or pre-empt risk-enducing behaviour. Datamine can also look at the nature of the risk's relationship with variables such as profitability.

Risk can generally be categorised as either daily (systemic) or extreme event risk. Daily risks are those a business is exposed to in the course of normal business operations. Extreme event risks are those which have a low probability of actually occurring, but would have a very high impact if they did.

If these risks can be assessed, understood and quantified, the business can put initiatives into place to minimise exposure to them, and their potential effect. Predictive risk modelling is particularly useful in ascertaining how much risk a new customer or prospect holds. Datamine has a comprehensive database of bankrupt ajudications dating back to 2001 which can also assist in risk analysis.

Datamine has created risk models for a number of banks and financial institutions. BNZ have utilised risk profiling to manage and approve credit card limit increases, enabling them to maintain BNZ Cards current level of portfolio risk, while maximising the profitability of customers.