Supply Chain Credit Risk

Global supply chains have become increasingly complex, and supply chain risk management (“SCRM”) is a major issue for most large corporates.

Globalization of trade flows means that SCRM increasingly features in trans-national trade discussions.  For example, a key issue in the current Brexit negotiations is the complexity of the supply chain across the UK and Continental Europe; some larger product sub-assemblies contain components which have repeatedly crossed borders during the manufacturing process. This is one of the main reasons that the EU is keen for the UK to stay within the Customs Union.

The development of “Just-in-Time” production processes began in the 1980s; it has squeezed working capital costs to a minimum and reduced the risk of overstocking.  Supply chains are leaner and more agile as a result, but they are also potentially longer and more fragile.

This paper looks at some of the largest global corporations and uses bank-sourced data to assess the level and distribution of credit risks across their supply chains.

To access the full whitepaper, please provide your details below.

    By clicking the "Submit" button, you are agreeing to the Credit Benchmark Terms of Use and Privacy Policy.

    Download Whitepaper Now
    Sovereign Bond Risk Management

    In the current low yield environment, many Sovereign bonds issued by different countries are priced at similar levels. However, this Read more

    Introduction For Credit Portfolio Managers

    Credit Benchmark is a market-led response to three of the most critical issues facing credit risk professionals: 1) The need to Read more

    Sovereign Default Risk In Developing Economies

    This paper examines the use cases for Credit Benchmark’s Consensus Probabilities of Default (Consensus PDs), in the context of more Read more

    Impact Of BCBS Proposals On IRB Banks

    The Basel Committee on Banking Supervision recently published wide-reaching proposals for reducing variation in Credit Risk Weighted Assets, with a Read more

    Follow us on:

    Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.