UK businesses have been hit hard by the impact of Covid-19. We also know from our own economic analysis, that more than half of small businesses hold only enough cash to survive for a few months. Some sectors have been impacted more than others, for example accommodation and food services, recreation and non-essential retail. At the same time, the regions that rely most on those sectors are particularly vulnerable.
The unprecedented volatility translates to a significant increase in risk for lenders – in terms of managing both existing portfolios and new credit applications. The key is understanding how the heightened risk will manifest itself – and how it can be mitigated.
Explored in this paper:
- Spot signs of stress in real-time
- Understand your concentration risk
- Adapt business models for survival funding
- Understand credit risk now and in the future
- Track stress