2 minute read
Welcome
by AICM
FROM CEO Welcome
The COVID-19 crisis is creating economic conditions never before seen by today’s credit professionals.
After an unparalleled run of growth, the Australian economy is facing significant contraction. For almost 30 years credit growth in Australia has been a constant. A generation of business leaders are unaware of the impact of a downturn or worse. The economic threat posed by the Corona virus pandemic only serves to highlight the critical value credit professionals provide to commerce and enterprise through their ability to navigate uncertainty whilst managing cashflow, the lifeblood of all businesses.
This, the inaugural Insolvency Risk Report, aims to provide a comprehensive and detailed overview of the underlying trends affecting credit and insolvency risk in Australia in 2020.
Commissioned in late 2019, the report came about as a result of AICM members advising that uncertain economic headwinds would be the number one challenge they expected to face in the current year. We did not foresee the pandemic and the serious impact it will have on Australia’s financial security amid an already misfiring economy.
Drawing on the AICM’s extensive network of regulators, specialist industry bodies and key credit industry stakeholders, this report summarises data from relevant public and private sector sources, complimented by insights and deep knowledge from industry experts to provide an unsurpassed analysis in respect of: z Historic insolvency trends z Trends in the lead indicators of insolvency z What these trends mean for you Produced amid the most rapidly changing economic conditions imaginable, this report provides a valuable longterm resource for the interpretation of emerging trends along with insights central to determining how these may impact your credit operation. The report will become a foundation against which trends and changes in years to come can be reliably measured.
About the AICM
Without our members, businesses are exposed to reputational damage, poor cashflow management, inefficient processes, the risk of regulatory intervention and the risk of not getting paid for hard won sales and services delivered.
The Australian Institute of Credit Management (AICM) is Australia’s leading professional membership body for over 2,600 commercial and consumer credit professionals, and the only credit industry-specific Registered Training Organisation in the country. We are the voice of the credit management profession.
Our members are the custodians of cash flow. They assess and mitigate credit risk in all sectors and manage credit terms for the supply of goods, services and finance.