A risk report is an assessment that summarises a company's financial profile in a single document. Its purpose is to provide a brief, clear answer to the counterparty's question: “what risk am I taking if I work with this company?”
What does the report show?
The Firmaskor report provides the company's score between 0–100 and its status label, alongside an evaluation across four categories: solvency, debt burden, profitability and resilience. In addition, the factors driving the score up and down are listed separately.
The report is not a forecast or an opinion; it is generated from the information provided by the company and yields the same result every time with the same data.
Why does a risk report turn out negative?
A negative result rarely stems from a single cause, but in most cases, one of several factors is decisive:
- Constrained solvency: short-term liabilities outpacing the company's rate of cash generation.
- Heavy debt burden: debt remaining high relative to the company's carrying capacity.
- Declining profitability: profit failing to grow at the same pace as turnover.
- A volatile profile: inconsistent performance across years.
How can you improve your report?
The first step to improving it is knowing which category is pulling the result down. Because the report states this, there is no need to guess. The second step is to make adjustments specific to that category that will deliver short-term results. Reviewing maturity structures and shortening collection periods are two adjustments companies often make.
The third step is the one most companies skip: measuring again after making adjustments. Moving forward without seeing that the change is reflected in the result leaves the preparation incomplete.
It also applies to the companies you work with
A risk report is valuable not only for your own company, but also for your dealers, customers and suppliers. Knowing the counterparty's solvency before entering into a new business relationship helps you prevent collection problems before they start.
See the score before you decide
See the score of your own company or of a company you work with in minutes. Sign-up is free and your first report is on us.
Related articles
Risk ScoreWhat is a risk score?What a risk score means, how to read it, and what determines your company's score.
Risk ScoreRisk score bands: what do the bands mean?What the Risky, Watch and Safe bands mean, what you should do in each band, and why a company that pays on time can still see its score drop.
Risk ScoreCompany risk scoreWhat a company risk score shows, who looks at it, and how to improve it.