Portfolio Management

Overview

Portfolios store aggregate data to manage your exposure, or to use as benchmark when analyzing risk for a customer. You define the selection criteria that determine the customers that are included in the portfolio. eCredit enables you to create portfolios, schedule the generation of portfolio statistics, and use the statistics in your analysis.

From the Portfolio Management module, you can define the following types of portfolios:

Financial Benchmark portfolios
Exposure portfolios
Standard portfolios

Financial Benchmark Portfolios

Financial Benchmark portfolios include customers from your eCredit database that meet the member selection criteria that you specify. eCredit uses the financial statement data for the portfolio members to generate average financial statements, average ratios, average cash flow, and the quintile distribution for ratios for the portfolio group.

You use this data as a comparison when analyzing financial and cash flow statements for a customer, for generating Expert Comments, and for analysis of the portfolio group.

Exposure Portfolios

Exposure portfolios include Accounts Receivable, performance, and credit line data for customers from your eCredit database that meet the member selection criteria you specify. For Exposure portfolios, you select the data that you want the portfolio to include, and specify whether eCredit generates the portfolio results by business unit, collector group, or period type.

You use this data to monitor your exposure, to formulate credit and collection policies, and to analyze your exposure groups.

Standard Portfolios

Standard portfolios store financial ratio benchmarks that you obtain from external databases of industry standards for groups that are representative of your customer base. You can enter the minimum and maximum values, the median, and the ratio values for the quintile distribution.

You can use Standard portfolio data to generate Expert Comments for a customer using the Financial Analysis feature.