Our new podcast episode brings together experts from Coface and Banque Stellantis to explore how data and advanced analytics help companies mitigate risks and seize opportunities in a rapidly changing landscape.
Listen to the full episode on your favourite platform.
In short, what will you learn if you listen to it?
The power of Data in risk management
As businesses face these sectoral shifts, data-driven insights are proving to be invaluable. Nesrin Gonin, Director of Information Services for Coface’s Western Europe & Africa region, highlights three key areas where data plays a critical role:
- Customer Risk Management – Ensuring financial stability by monitoring clients’ creditworthiness to prevent late payments and defaults.
- Supplier Risk Assessment – Securing supply chains by evaluating the reliability of key suppliers to avoid disruptions.
- Market Expansion Strategies – Leveraging data to identify trusted partners when entering new markets or launching new ventures.
Coface provides businesses with comprehensive company reports, including credit scores, financial statements, and payment behavior indicators. In an unpredictable environment, this level of granularity is essential for making informed decisions.
Banque Stellantis France: A data-driven approach to Credit Risk
As a leading financial entity, Banque Stellantis France has embraced data to enhance risk assessment and decision-making. Olivier Cogez, Head of Retail Risk & Studies at Banque Stellantis France, explains how they integrate Coface data to:
- Strengthen credit decision-making processes for borderline applications.
- Incorporate external data into credit scoring models for better predictive accuracy.
- Implement early warning systems to detect financial distress early and take proactive measures such as restructuring loans.
Real-time insights enable more accurate risk assessments and regulatory compliance, particularly under the European Banking Authority (EBA) guidelines.
The ability to access fresh, reliable data is crucial for us.
Olivier Cogez, Banque Stellantis France
Bridging Big Data and Smart Data
The effectiveness of risk management hinges on data quality and accessibility. Coface leverages both expert analysis and AI-powered insights to ensure data relevance. Two primary sources enrich its database:
- Industry experts and credit analysts provide context-specific assessments based on financial reports, economic trends, and direct company interactions.
- Policyholder feedback allows Coface to track payment behaviors across industries, identifying early warning signals for financial distress.
By transforming vast amounts of raw data into actionable intelligence, Coface helps companies navigate risks with greater confidence.
The future of Credit Risk Management
Looking ahead, risk assessment will continue to evolve, driven by technological advancements and regulatory demands. Key trends include:
- Open Banking: Enhanced data sharing allows for a more holistic view of clients’ financial health, leading to faster, more accurate credit decisions.
- AI & Machine Learning: Predictive analytics will refine risk models, detecting patterns that may indicate future financial challenges.
- Real-Time Monitoring: Businesses will increasingly rely on up-to-date financial indicators rather than retrospective financial statements.
As Olivier Cogez from Banque Stellantis notes:
The year 2025 will be a year where we need to be more aggressive in risk anticipation, putting all our efforts into detecting weak signals
The new reality of business risks
Economic uncertainty has become a constant for companies worldwide. Supply chain disruptions, inflationary pressures, evolving consumer behaviors, and sector-specific challenges are shaping the business environment.
As Frédéric Wissoq, Director of Underwriting for WEA Region at Coface, points out: key sectors such as automotive, construction, and retail illustrate the complexity of today’s market conditions.
- Automotive: The industry is facing an existential transformation due to the shift towards electric vehicles (EVs). Traditional supply chains are under pressure, while Chinese manufacturers leverage their production advantages to penetrate the European market. Consumers remain cautious due to high EV prices and evolving battery technologies, leading to a slowdown in new car sales.
- Construction: After a challenging period, the sector is expected to stabilize by 2025. High interest rates have slowed new housing projects and renovations, but with rate adjustments, a recovery may be on the horizon—albeit gradually.
- Retail: Consumers have become increasingly price-sensitive due to inflation. Retailers must balance price competitiveness with profitability, and those with leaner operational models gain an advantage.
A must for for businesses
In an era of heightened economic volatility, businesses cannot afford to rely on outdated risk management practices. The integration of data-driven insights, expert analysis, and cutting-edge technology is key to making proactive, well-informed decisions. Learn more about our Business information solutions.
For more insights, listen to the full podcast episode and discover how Coface’s expertise in risk assessment can support your business growth.
