There are few more important tasks a company faces than collecting cash, and as a result, it’s also a significant risk - the impact on cash flow from defaulting customers can have huge implications for all but the most cash-rich businesses. Naturally, CFOs must have a robust set of processes in place to help cope with the threat.

In times past, ordering a report would be as robust as credit risk management would get, but the financial crisis saw seemingly healthy companies going out of business - despite having a thumbs up from credit-reference agencies. The problem is that much of the analysis done by these organisations is based on historical information.

Instead, a combined approach must be taken to tackling the threat. While the traditional credit check has its place, it is wise to conduct independent research too. Simple checks on financial websites and the use of news aggregators such as or can provide a surprising amount of useful information on the financial health of customers.

Supply risk is the other side of the credit risk coin. While not getting paid is as serious as it gets, suppliers being unable to provide key goods or services is not far behind. Again, supplier health monitoring is a key weapon in this battle, combined with more traditional tools such as credit checks.

The sheer volatility of currency and commodity prices have caught many companies off guard. With many in-demand materials having doubled in price, or more, in just 12 months, even the most hardened CFOs would have winced.