SEPTEMBER INSIGHTS

Business Risk Index

CreditorWatch Business Risk Index
The CreditorWatch Business Risk Index is a new economic indicator that provides valuable insights into the health of Australian businesses by region and industry.

It is the only index in Australia to provide an accurate and forward-looking picture of the current credit risk exposure of Australian businesses. As a measure of the financial health of businesses, it is ultimately also a critical barometer of the wellbeing of the entire economy.

The index is a dynamic measure of stress for businesses, driven by unique data sources which are leading indicators of insolvency risk including:
  1. Geo demographic risk – a geographical ranking of future insolvency risk for more than 300 regions in Australia.
  2. National average probability of default (PD) – an early indicator of the insolvency risk of Australian businesses.
  3. National trade receivables growth – an indicator of business trade receivables and cash flow activity. This is a key measure of the overall health of the Australian economy.


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