Structure Finance - Session IV. Effizientes Management globaler Debitorenrisiken

Transcription

1 Structure Finance - Session IV Effizientes Management globaler Debitorenrisiken 150 Jahre Peter Wahnschaffe Stuttgart, 25. November

2 150 years Jahre Agenda BASF at a glance Customer Credit Risk BASF Risk assessment of BASF Automated credit decisons Conclusions 2

3 BASF We create chemistry Our chemistry is used in almost all industries We combine economic success, social responsibility and environmental protection Sales 2014: 74,326 million EBIT 2014: 7,626 million Employees (as of December 31, 2014): 113,292 6 Verbund sites and 353 other production sites 3

4 BASF s segments as of January 1, 2015 Chemicals Performance Products Functional Materials & Materials & Solutions Solutions Agricultural Solutions Oil & Gas Petrochemicals Monomers Intermediates Dispersions & Pigments Care Chemicals Nutrition & Health Performance Chemicals Catalysts Construction Chemicals Coatings Performance Materials Crop Protection Oil & Gas 4

5 What constitutes the special relevance of global Credit Risks? Financial & currency crisis Global / regional corporate groups Legal frameworks and practices vary widely Delivery on open terms (e.g. 30 or 90 days) Accounts receivable (for BASF Group bn) with related risks Specific industry risks High risk countries Natural catastrophes Dynamic economic environment & transnational interactions Effective management of credit risks is essential and faced with increased challenges 5

6 Customer Credit Risk BASF - Processes Customer Master Data Credit Decision Order Processing Debt Collection New Customer Changes Corporate groups Risk Assessment Mitigating risks Credit limit decision Automatic check for credit limit / overdues Manage blocked orders Segmented approach Ensure timely receipt of payment Effective reminding procedures Segmented approach Standardized processes are key for success 6

7 Customer Credit Risk BASF - Responsibilities Global Community comprising global, regional & local teams Central assessment & coordination of BASF Top Customers Local credit risk managers globally present in relevant countries / sub regions Local credit risk management is responsible for all customers located in the same country One global Single Point of Contact of credit risk management per customer Customer Master Data Credit Decision Order Processing Debt Collection

8 Customer Credit Risk BASF Further Key Characteristics Globally standardized processes & responsibilities Business Partnering close collaboration with BU s Finance Approval Final decision on credit limit and credit blocked orders by Finance Master Data Speed CCRMUp Credit Decision Order CRM BASF Debt Collect. Globally harmonized tools as base for management of master data, credit limits & order processing, risk analysis and debt collection Risk Mitigation customized solutions enabling business, credit insurance only with regards to catastrophic risks on portfolio level Standard tools are the base for harmonized processes 8

9 Assessing Customer s Credit Risk Differentiated Approaches BASF Top Customers Risk assessment approach depending on relevant risk exposure Internal analysis (comprehensive/light analysis) applied in case of relevant risk exposure Global assessment model & tool Regional customization based on regional specifics Qualitative & quantitative data (financials) Usage of external credit information Focus on relevant credit exposures by appropriate risk assessment approaches 9

10 Automated Credit Decisions for small Customers Overall Process Automatize regular credit decisions for small customers, which qualify as good customers (2) (1) (3) (4) 1. Usage of internal & external information 2. Automatized assessment based on a statistically proven score 3. Credit decisions include determination of credit limit & setting rules for order processing 4. Automatized credit decisions in case of credit blocked orders Increased efficiency by automatized procedures 10

11 Automated Credit Decisions for small Customers Scoring Internally big data is available providing meaningful information concerning customer s behavior Data is available on different levels such as overall company data, payments, orders. Patterns of customer s behavior allow well founded predictions for the future Sub Scores External Rating & Company Data Order Behavior Payment Behavior Total Score Identification of patterns in big data enables predictive scoring of customers 11

12 External Credit Information input to automatized Scoring & further Functions Quick information concerning external bad events Meaningful input to scoring and credit decisions Credit Mgmt. Global network of best practice partners per country/sub-region Connected with a global network of best practice partners 12

13 Best Practice External Credit Information Requirements to Credit Bureaus Meaningful information in accordance to local frameworks master data / corporate groups score / rating incidents sub scores financials.. Availability of interfaces to CRM platforms Prompt credit information for new customers & efficient identification Daily updates in case of changes for existing customers Credit Mgmt. Increased requirements to credit bureaus also for especially challenging countries & sub regions 13

14 Conclusions Effective global CCRM is key enabler for profitable growth Focus on most relevant risks by automatized credit decisions for small customers Meaningful and appropriate risk assessments based on global standards are the core of an effective CCRM The decision on credit bureaus highly affects CCRM of companies especially in view of increasing requirements. Global credit risks are highly dynamic continuous development of CCRM is required 14

15 For More Information contact: Bild Peter Wahnschaffe Global Customer Credit Risk Management BASF SE ZFK/RG - C Ludwigshafen, Germany Phone: peter.wahnschaffe@basf.com 15

16 150 years