The situation during the last year have impacted us in many ways. Many companies are experiencing difficult situations and this pandemic has impacted different countries and different industries in different ways. Our aim is always to help all our customers as much as possible to regain stability, control and insight, which is more important than ever.
Our generic scorecards are an important tool and a foundation for many credit decisions, and will continue to be so. It is, therefore, highly important for us to ensure we continue to maintain predictive scores based on high quality data.
There has been and will continue being challenges and changes in the market and we are monitoring our evaluations carefully. Based on previous experiences from crisis and scorecard validations, the scorecards ranking from low to high risk have remained stable. This means that a company with a high score will still have a lower risk than a company with a lower score. However, the corresponding risk for each score did increase and deviate from predicted and the scores did underestimate the risk.
Based on this, we assume our scorecards will continue to rank the companies from low to high risk. However, the situation right now means the risk will most likely increase, but is nothing we have seen yet in our underlying data. We strongly believe in providing statistical scorecards based on facts, historical data and modelling. Our scorecards are closely monitored to keep track if any changes or amends are necessary. This is our preferred way forward to ensure stability and control.
