Energy & Utilities (E&U) companies, typically, have a sizable number of C&I customers who bring considerable revenues. But when these customers find themselves in financial trouble, it could translate into defaulted payments and potentially into bad debts worth millions of dollars. This is a situation that every E&U company would like to avoid.
It would be impractical to pursue each of the commercial accounts in the company’s portfolio. It is thus imperative for companies to identify vulnerable commercial accounts leveraging data, and build quick and robust communication strategies for their troubled C&I customers to lessen the risk impact on their revenues.
If companies choose to merely rely on their internal interactions (with their commercial customer accounts) to identify vulnerabilities, that would be grossly insufficient. Rather, WNS can help with its holistic approach, underpinned by the analysis of the C&I customer’s interaction with the E&U company, its financial metrics, stock market data, press coverage and macro-economic data impacting the overall industry, to gauge the customer’s vulnerability to insolvency.
WNS’ Bankruptcy solution model served as an early alert for a leading U.S. utility company, which could develop customized business strategies for its commercial customers that were vulnerable to insolvency. The analysis helped accurately identify one such account (and categorize it into the ‘high-risk’ bracket), which filed for bankruptcy, despite showing no clear signs of risks.
What We Offer: A Complete Suite of Financial Health Indicators
- Bankruptcy Forecast Model that predicts the likelihood of commercial customers declaring bankruptcy in the future
- Financial Ratios that help support the bankruptcy prediction with historical indicators of financial instability
- Consolidated Dashboards that cover news event analysis, ratios and model predictions to analyze customers individually and across industry domains