How do you calculate the Risk Score?

Created by Katie Deverill, Modified on Wed, 19 Oct 2022 at 06:13 PM by Katie Deverill

The Company Check Risk Score is calculated on the fly using a robust algorithm.

What makes the algorithm robust? Research is conducted across all companies that have failed/become insolvent within the last 12 month period, to determine common contributory factors. 

These factors (or variables) are analysed to determine the weighting each variable carries and it's impact on a company's ability to remain solvent.

This statistically proven model is based on a probability of default table and combines hundreds of variables to determine a company's risk of failure. 

Alongside these variables, a company's size, type and status also influence a company's Risk Score.

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