This whitepaper provides insights on:

• What credit risk management is—defining credit risk and explaining how it affects suppliers and businesses in the UAE.

• The importance of credit risk management—how it helps protect organisations from client defaults, enhances cash flow, and supports long-term financial stability.

• Key components of a credit risk management report—outlining the essential information that should be included for accurate assessment and decision-making.

• Methods to collect and analyze information—explaining how to evaluate client creditworthiness using data such as payment history, financial standing, and credit terms.

• Strategies to monitor and mitigate risks—detailing ongoing processes to reduce exposure to non-payment or late payment, including risk monitoring tools and mitigation frameworks.

• Metrics like Days Sales Outstanding (DSO)—illustrating how effective credit management can shorten payment cycles and improve liquidity.

• Challenges specific to the UAE market—highlighting issues like widespread late payments among SMEs and how structured credit evaluations can counter them.

• Long-term benefits of effective credit risk management—such as improved client relationships, stronger financial control, and enhanced business performance.