technical considerations for implementing international credit projects jay tchakarov director of...

Technical Considerations for Implementing International Credit ProjectsJay TchakarovDirector of Product ManagementHighRadiuswww.highradius.com

Company Overview

Founded 2006

fastest growing tech company

specialized expertise in credit operations

cloud-based and SAP-certified solutions

credit | cash app | deductions | collections

Partial List of Customers

Credit Solutions Must-Haves

Effective Credit Decisions

minimize low-value manual work

focus analysts effort to maximum effect

enable streamlined communication

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Electronic applications and review process

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Identifies candidates for review based on periodic review, security expiring, credit limit, etc.

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Automatically collect supporting facts• Integrate with ERP• Aggregate financials• Aggregate agency

reports

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Credit risk scoring prioritizes at-risk customers • Predictive model• Configurable rules• Targeted strategies

Propose credit limit adjustments

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst ReviewIntegration with order and

delivery systems

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Credit check identifies orders and deliveries to be reviewed and/or blocked• Configurable rules• Targeted strategies

Credit Check

Check Rules

Scoring

Engine

Scoring Model

3rd Party

Assessment

Characteristics

(Payment History,

Sales History)

Financial Informati

on

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

• Clear presentation of information

• Integrated cross-functional communication

• Integrated review and escalation workflows

• Role-based visibility and security at the user level

Meeting International Needs

Impact on Multi-nationals

organization and processes

varying levels of risk across countries

different drivers of risk

different regulations and compliance

different credit and insurance agencies

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Easy to deploy model for multiple targeted application forms

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Identify candidates for review based on insurance info

Insurance

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

Integration with multiple sources and agencies

Integration with insurance agencies

Insurance

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

• Targeted rules and strategies that take into account different factors with different weights

• Formulas to bring down risk to standard scale

Insurance

Credit Check

Check Rules

Scoring Engine

Scoring Model

3rd Party Assessment

Characteristics (Payment

History, Sales History)

Financial Information

Credit Cycle

New Credit Application

Periodic Reviews

Sales Order Processing

Credit Analyst Review

• Visibility from country-level to global-level

• Standard measure/scale of risk

• Global review workflow and escalation path

Conclusion

Requirements

minimize low-value manual work

focus analysts effort to maximum effect

enable streamlined communication

cross-country standardization

minimize need to insure customers

Must Haves

configurability

paper to electronic standardization

automatic credit data collection

country-/segment-targeted credit rules

integrated workflows and escalation