2023

Aicm Risk Report 2023

Publisher: Nick Pilavidis FICM CCE

Chief Executive Officer

Australian Institute of Credit Management

Editor: Claire Kasses

General Manager

Australian Institute of Credit Management

Direct: 02 9174 5727

Mob: 0499 975 303

Design: Anthea Vandertouw

Ferncliff Productions

T: 0408 290 440

E: ferncliff1@bigpond.com

Australian Institute of Credit Management

Level 3, Suite 303, 1-9 Chandos Street St Leonards NSW 2065

T: 1300 560 996

E: aicm@aicm.com.au www.aicm.com.au

How

Julie McNamara MICM CCE National President

The fourth issue of our risk report documents how the growing pressures on individuals and businesses are flowing through to the results of credit professionals.

The report has continued to evolve since the inaugural report issued in early 2020 with each report providing a greater understanding of what has been experienced in the prior 12 months and how credit professionals should prepare for the coming 12 months.

Our 2023 report has evolved with greater insights provided from a survey of almost 100 credit professionals and contributions from respected thought leaders in our industry.

Our annual risk seminars and risk report are a clear example of how the AICM community supports credit professionals to manage credit risk in an increasingly complex environment.

Thank you to the AICM national office, division councillors and authors who have contributed to this report.

Nick Pilavidis FICM CCE Chief Executive Officer

Credit professionals play a crucial role in managing risk and ensuring that their businesses receive payment for sales and services delivered. They need to monitor customer behaviour, adjust to changing legislation and regulation, monitor economic trends, forecast future performance and use this information to make informed decisions to mitigate risks to contribute to their organisation’s financial health.

To inform the profession, the 2023 risk report draws on a survey of AICM members and Certified Credit Executives to provide insight on how recent and future economic conditions are impacting their ability to manage risk and ensure their business is paid promptly for their hard won sales.

Most credit professionals have managed the economic pressures of last year well with only 5% seeing deterioration in collections performance in 2022, however the proportion with improved results was significantly lower than 2021.

The predictions of many commentators of increased insolvency levels in 2023 are supported by AICM members, with 98% of members expecting insolvencies to continue at the same level as 2022 (20%) or rise (77%) as the pressures of interest rates and inflation the most relevant factors driving increase. Credit professionals are well prepared for this increase with only 34% expecting deterioration of results in 2023 indicating they are confident in their ability to mitigate risk.