The Graydoncreditsafe Shock Resilience Indicator evaluates how well a company could cope with ‘economic shocks’, divided in 9 different segments.
The X-as demonstrates the financial health of a company based on classic credit risk analysis. The Y-axis projects the vulnerability to future shocks based on the cash injection need and the cash reserves according the latest accounts.
What is the Shock Resistance Cash Injection Need?
A: It evaluates whether a company requires an immediate cash injection to survive a financial shock and continue operations.
What is the Shock Resistance Cash Reserve?
A: It assesses the level of available redundant cash reserves that a company can use to absorb unexpected financial shocks without relying on external financing.
What is the Shock Resistance Nine Grid Segment?
A: It categorizes companies based on their financial health and ability to withstand financial shocks. This assessment combines classic financial indicators with real-time stress factors to determine a company’s resilience.
What do the different segments mean?
| Segment | Description |
|---|---|
| 1 | Immediate risk of failure & very vulnerable to shocks |
| 2 | Risk of failure & very vulnerable to shocks |
| 3 | Healthy, but very vulnerable to shocks |
| 4 | Immediate risk of failure & vulnerable to shocks |
| 5 | Risk of failure & vulnerable to shocks |
| 6 | Healthy, but vulnerable to shocks |
| 7 | Immediate risk of failure, but shock resistant |
| 8 | Risk of failure, but shock resistant |
| 9 | Healthy & shock resistant |