Providing Bitsight VRM Customers Actionable Insights Into The Risk and Business Health of Vendors
Real-time monitoring of the risk and business health of third parties
Argos Risk has been providing affordable, critical financial risk and business health analytics to financial institutions across the United States.
Leveraging proprietary algorithms, ArgosRisk easily automates third-party risk monitoring and mitigation by collecting, synthesizing, and analyzing information from thousands of data points.
ArgosRisk improves governance and regulatory compliance by providing alerts and actionable insights, that empower your institution to make decisions based on the latest overall risk evaluation of your vendors or any commercial third-party relationships.
The information provided by ArgosRisk is made more effective by its easy-to-understand, color-coded, 0 to 100 scoring that allows almost anyone to make effective use of the service. Most subscribers are monitoring their third-party vendors within minutes of their first login.
How it works
Simply enter the vendor, or any commercial third- party. ArgosRisk immediately begins the process of gathering and synthesizing thousands of data sources into a simple-to-understand profile. The results include a street-level address view of the vendor, the latest news, customer complaints, status of lawsuits and liens, and 38 key performance and financial indicators, presented in an easy-to-understand color-coded, 0 to 100 scale. See attached technology overview and AR SURVEILLANCE for more information.
- Real-time assessment of the risk and business health of vendors.
- Comprehensive assessment that leverages over 10,000 data points.
- Automated assignment of vendor risk classification.
- Improved regulatory compliance with OCC, FDIC, and FFIEC regulations.
- Email alerts of key events and changes in vendor risk profile.
|SUGGESTED CREDIT LIMIT / ACTION||
The Suggested Credit/Limit Action is the product of Argos Risk using multiple credit information data elements from multiple data sources combined with our years of experience recommending a credit action.
Factors that positively impact the Suggested Credit Limit/Action:
Factors that negatively impact the Suggested Credit Limit/Action:
|OVERALL VENDOR VIABILITY||The Argos Risk Score is a proprietary metric that assesses the overall financial, payment, and going concern risk associated with a specific business combining multiple risk factors into one simple score. The higher the score, the lower the risk of doing business with that company.|
|TIMELINESS OF PAYING INVOICES||The Days Beyond Terms (DBT) score is an Argos Risk score indicating a company's current vendor payment record. Unlike other Argos Risk Scores, a lower DBT score indicates stronger vendor payment performance. If a company has a low DBT score but they are paying you slower than desired, it may present an opportunity to request quicker payment resulting in improved cash flow. If the DBT is unavailable you will see "Incomplete" displayed. The range for DBT is 0 to 120 days.|
|SHORT-TERM OUTLOOK FOR BUSINESS||
The Business Health Index (BHI) is a proprietary Argos Risk tool that predicts the Business Health of a company in operation that you have added to your account. The higher the BHI score the more financially stable the business is. If the BHI has a material decline, you will receive an email notification prompting appropriate risk management action. The higher the score, the lower the risk associated with doing business with that company.
WHAT CHANGES THE BUSINESS HEALTH INDEX SCORE?
Factors that positively impact the Business Health Index score:
Factors that negatively impact the Business Health Index score:
CONDITIONS OF POOR BUSINESS HEALTH
|LIKELIHOOD OF MEETING FINANCIAL OBLIGATIONS||
The Likelihood of Consistent Payment (LCP) is a proprietary score that predicts the likelihood of a business to pay its vendors on a timely basis. The higher the LCP percentage the more likely a business's payment history will be indicative of future payment trends. If a company's LCP is low or declining, it is more likely that the timeliness with which a business pays its bills may deteriorate and is proactive signal requiring risk management action. For all material changes, you will receive an email notification prompting appropriate risk management action. The higher the score the lower the risk of doing business with that company.
The LCP score of a business is based on the following factors:
The Likelihood of Consistent Payment Score offers predictive insights, especially on micro and small businesses with less than 15 employees.
|30-DAY TREND OF KEY METRICS||
Trends are designated by upward facing green arrows, horizontally aligned yellow arrows, and downward facing red arrows.
If you see an upward facing green arrow the company is currently on an upward trend as it relates to OVERALL VENDOR VIABILITY scores and suggested credit limits.
If you see a horizontally aligned yellow arrow the company's trend is moderate and remains constant.
What are recent alerts?
The alerts summary will display a listing of the most recent alerts based on your current filter criteria. Alerts are generated by changes in OVERALL VENDOR VIABILITY scores and/or public change records. You may click on the company name to see more information related to each alert. You can also hover over each company name to display a floating window which includes more alert information.
If you just setup your account to monitor companies you will see "No Alerts Found" in this section of the dashboard. When new alerts have developed they will display here.
Total Alerts Last 6 Months
In red you will see "Total Alerts Last 6 Months" next to an underlined number that links to entire list of recent alerts for the companies in your account.
Under "Total Alerts Last 6 Months" you will see "Assessment Suggested" along with an underlined number. The underlined number is a link that will guide you to a list of the companies that may require a financial assessment.
Users can purchase the detailed ArgosRisk reports. The reports will include the following information:
Contact Kevin Sasser at KSasser@argosrisk.com