Annual report 2007 - Euler Hermes

The strength
of an international
organisation
Euler Hermes’ credit insurance activity is underpinned by unparalleled
expertise in the analysis and management of non-payment risk for
trade receivables. This expertise is the basis of the group’s model.
RISK ANALYSIS – THE CORNERSTONE
OF THE EULER HERMES BUSINESS MODEL
To ensure the quality and reliability of its information,
Euler Hermes has decided to step up its investment
in strong growth regions, notably Brazil, Russia, India,
China, Turkey and Singapore. This decision results from
an international study carried out to identify all opportunities
An analysis of business risk is the first
element of added value that the group
provides to its policyholders. Thanks to its
operations throughout the world, Euler
Hermes monitors the economic and financial
situation of tens of millions of businesses
and the economic conditions in which they
operate. More than 500 analysts constantly
examine the financial statements of companies,
visit their management and local managers
and verify the information obtained. This
research results in a score or “grade” of 1 to
The best information on emerging markets
26 – ANNUAL REPORT 2007
75%
positive responses
to client credit limit
requests in 2007.
10 being assigned to each company. The
lower the grade, the lower is the risk
of insolvency. All Euler Hermes’ subsidiaries
use the same methodology, thus ensuring
that grades are homogenous. To ensure
optimum efficiency, the Euler Hermes
company located closest to the risk gathers
the information and handles the credit
limit request. For instance, the subsidiary
in Buenos Aires will deal with a credit limit
request from a European company whose
customer is based in Argentina.
to optimise the quality of local information. The study
prompted Euler Hermes to launch a long-term project,
known as the “Information Project,” designed to ensure
the best possible quality of information.