In today's uncertain world, businesses face numerous challenges that require precise and reliable data to ensure their longevity and growth. But not all data is created equal, and high-quality data is key when it comes to take the right decisions. The transformation of raw data into actionable insights is what Coface calls "Smart Data."
From Big data to Smart data
While the era of Big Data has made it possible to access vast amounts of information, not all data is created equal. The true value lies in identifying and utilizing high-quality and relevant data. Smart Data is about finding that needle in the haystack — the pertinent information that can drive strategic decisions and mitigate risks.
The process of transforming Big Data into Smart Data begins with sourcing relevant data. Coface employs rigorous procedures to identify the best data sources globally and ensures the data's quality through a common data dictionary. This standardization allows for consistent calculation of financial ratios and credit scores across different countries and industries.
Coface’s unique position as a credit insurer provides access to confidential data about 195 million companies, which is integrated to enhance the value of the information. This includes exposure data, payment experiences, and other critical metrics that offer deeper insights into credit risk. Our 700 risk experts play a crucial role in enriching that data with their on-the-ground insights and sector-specific knowledge.
Leveraging Data Science and AI for Predictive Risk Management
Governing is about forecasting. Effective risk management is about anticipating and mitigating risks before they materialize. Coface's Data Lab, in collaboration with risk underwriters, credit analysts, and economists, harnesses the power of AI and Data Science to design innovative risk management solutions. These include:
- Advanced Analytics: Real-time comparison of financial ratios between similar companies, identification of investment opportunities, and dynamic dashboards based on scores and key indicators by inhouse economists.
- Scoring Solutions: Estimation of the probability of a company defaulting within a year, enhancing debtor risk management.
- Modeling Solutions: Simulation of the impact of macro-economic shocks on companies’ financial statements under various scenarios.
These solutions help clients minimize risks, detect early warning signals, and capitalize on growth opportunities. Clients benefit from more intelligent, predictive solutions.
Coface's approach to Smart Data exemplifies how companies can transform raw data into strategic assets. By combining exclusive data, expert insights, and AI technologies, Coface provides clients with predictive risk management solutions that turn commercial risks into growth opportunities.
