Unmanaged Risk And Credit Management For Order To Cash


Handling credit and risk management for order to cash processes traditional can look like herculean task for organisations. Current practices involve manual input of data, using spreadsheets and calculators and bringing different departments together which can be slow, laborious and open to error. Deployment of automated credit management processes, however, offer range of benefits when it comes to transforming an organisation?s credit management to dramatically reduce the time, costs and complexity associated with credit transactions and reduce potential financial loss due to risk.

The complexities of credit management and risk assessment can be complicated and detailed, and that?s why automation is often the go-to solution. Automating credit management improves access to critical data and can offer organisations competitive edge along with improved control of the financials on credit operations. Timely access to accurate data is key for credit and risk assessment processes which can be achieved with automated systems for predictive analysis for different orders. Having access to up-to-date information also allows executives to make informed decisions as quickly as possible and with greater accuracy.

Credit management also involves processes such as authorization management, collections process and credit iscoring. Credit iscoring helps to weigh the risk and establish an appropriate credit limit. Automation also assists in this process by changing the credit limit based on payment rate, debtor aging and other such information. Automated software can identify sales order trends and set limits accordingly for both existing and new customers.

One of the biggest benefits of automation is the improved accuracy. Automation eliminates manual entry errors, improves the quality of the data being captured, helps to identify potential fraudulent transactions and reduces the potential risk of bad debt. This can help to keeps losses due to errors to minimum.

In conclusion, automated credit management software can be huge advantage to an organisation in terms of reducing cost, speeding up the process, improving accuracy and offering better control of credit and risk management. Automated credit management also presents organisations with an opportunity to make more informed decisions in terms of credit limits and strategies for maximized profitability.