When Enough Is Enough: Assessing Credit Risk Of Companies With Incomplete Financials

Risk analysts are often confronted with incomplete financial information when dealing with private corporations, and therefore face gaps in their credit risk analysis. When this happens, some analysts may approximate missing financial values with industry averages, or forego the analysis altogether.
In his latest blog, Giorgio Baldassarri, Global Head of the Analytic Development Group, explains why taking a dual approach to credit risk analysis, that takes into account both the quantity and materiality of the exposures, is encouraged when there are missing financials.
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