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.