In today’s unpredictable economic climate, Australian businesses need more than gut instinct to navigate risk. They need timely, data-driven insights that help them anticipate challenges before they escalate. That’s where CreditorWatch’s Business Risk Monitor (BRM) comes in.
Launched as the next evolution of the Business Risk Index, the BRM is a comprehensive monthly report that tracks business health, economic conditions and sector-specific vulnerabilities. It’s designed to help credit professionals, commercial lenders, policy makers and business owners make smarter decisions with confidence.
The BRM was developed by CreditorWatch in partnership with Open Analytics. It combines proprietary data with external sources to deliver a holistic view of business risk across Australia.
The BRM is updated monthly – giving users a real-time pulse on the economy and business conditions. This frequency allows businesses to respond faster to emerging risks and avoid being blindsided by downturns.
The Business Risk Monitor includes five core indicators:
- Credit rating barometer – categorises businesses into credit rating bands (from premium to sub-prime) based on their likelihood of failure. This is particularly useful for lenders assessing creditworthiness of loan applicants. Also for helping creditors when setting credit limits and prioritising collections.
- Small business failure rate – tracks systemic risk among SMEs. As of the latest report, failure rates are 12 percent above the 10-year average, signalling increased pressure on small businesses.
- Economic conditions tracker – a predictive index that combines consumer and business data to forecast economic health. It reflects trends in household finances, business profitability and unemployment.
- B2B Payment Defaults Index – the rate of payment defaults among businesses is a critical leading indicator of future insolvency. It is based on CreditorWatch’s proprietary payment default data. It highlights the importance of implementing default alerts in your monitoring workflow.
- Geo-Risk Index – This index measures the probability of default of businesses in more than 350 regions around Australia, to identify the best and worst performing areas in the country.
The BRM also carries over key data measures from the Business Index such as ATO tax debt defaults, court actions, arrears and insolvencies with comprehensive commentary from respected Chief Economist Ivan Colhoun.
The BRM is more than a report – it’s a strategic tool. Businesses use it to:
- Identify early warning signs of financial stress
- Benchmark their performance against industry averages
- Monitor risk hotspots by sector and location
- Inform credit decisions and lending policies
- Forecast economic conditions and plan accordingly.
Many economic indicators are published quarterly, which can delay decision making. The BRM’s monthly cadence means businesses can act on insights faster – whether that’s tightening credit terms, adjusting budgets or preparing for sector-specific downturns.
With the Business Risk Monitor, CreditorWatch empowers Australian businesses to stay informed, agile and resilient. Whether you’re managing risk for a large enterprise or running a small business, the BRM gives you the clarity and foresight needed to thrive in uncertain times.
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