New U.S. Supplier Evaluation Risk Rating Version 7.1

1. New U.S. Supplier Evaluation Risk Rating Version 7.1 Customer Presentation September 2009

2. D&B Confidential and Proprietary.��This information�is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates. ? Dun & Bradstreet 2009 2







9. D&B Confidential and Proprietary.��This information�is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates. ? Dun & Bradstreet 2009 9 Supplier Evaluation Risk Score Overview The SER is a statistically based score that predicts the likelihood that a supplier will seek legal relief from creditors or cease operations without paying creditors in full over the next 12 months The SER is based on a 1-9 scale: A SER of 1 is assigned to suppliers having the lowest risk of financial stress A SER of 9 is assigned to suppliers having the highest risk of financial stress The SER is derived from the D&B Global Failure Risk Score, which is known as the Financial Stress Score (FSS) in the US Within the US, the SER has been enhanced to leverage the benefits of the new FSS

10. D&B Confidential and Proprietary.��This information�is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates. ? Dun & Bradstreet 2009 10



13. D&B Confidential and Proprietary.��This information�is intended only for D&B customers pursuant to their D&B Master Agreement and for D&B associates. ? Dun & Bradstreet 2009 13 The previous risk class distribution was�relevant in the past when business failure rates were much lower than they are today. Classifying 80% of all business as Class 1�- Low Risk was reflective of the fact that overall, businesses failure rates were very low and the majority of businesses were not at risk of failure.� However, the current economic times are different.� First, the risk of business failure�is significantly elevated; Second, we have seen an increase in the use of predictive scores to isolate the highest and lowest�risk businesses;�And third, our customer demand for�a simplified risk indicator�that is easy to interpret is growing. The new risk class distribution addresses these three areas.The previous risk class distribution was�relevant in the past when business failure rates were much lower than they are today. Classifying 80% of all business as Class 1�- Low Risk was reflective of the fact that overall, businesses failure rates were very low and the majority of businesses were not at risk of failure.� However, the current economic times are different.� First, the risk of business failure�is significantly elevated; Second, we have seen an increase in the use of predictive scores to isolate the highest and lowest�risk businesses;�And third, our customer demand for�a simplified risk indicator�that is easy to interpret is growing. The new risk class distribution addresses these three areas.










New U.S. Supplier Evaluation Risk Rating Version 7.1

New U.S. Supplier Evaluation Risk Rating Version 7.1

Presentation Transcript

Supplier Risk

Supplier Evaluation and Selection

Point Rating Evaluation Plan

Risk Evaluation

Credit Scoring or Risk Rating

Risk Identification Risk Register Risk Rating Matrix Risk Monitoring Evaluation Pitfall Risk Management

RISK EVALUATION AND RISK MANAGEMENT

Evaluation Rating Forms

Supplier Rating

NRF Evaluation & Rating

Evaluation and Rating

Country Risk Analysis SOVEREIGN RISK RATING March 2008

Rating guides for New Report evaluation

Country Risk Analysis SOVEREIGN RISK RATING March 2012

ERM in the Rating Evaluation

Risk evaluation Risk treatment

A New Measure for Supplier Performance Evaluation

SUPPLIER EVALUATION GUIDELINES

AS 51 version 2 -Training Module - Supplier Rating

Supplier Evaluation in China

Supplier Evaluation and Selection

What are New Features in Liferay DXP 7.1 Version?

New U.S. Supplier Evaluation Risk Rating Version 7.1