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Credit Risk Assessment and the Importance of Truly Knowing the Customer

Summary

Summary

Most models only look into bureau reports and trade references to calculate the credit score. These models don't give an idea of how a company is going to perform in the future. The Porter's Five Forces model is an in-depth model to look into the customer's business.

Watch this video to learn how the five forces affect each other. Then, use that knowledge to calculate your customer's credit risk.