Evaluating the Signals

As part of our ongoing effort to help businesses proactively manage credit risk, Experian Business Information Services conducted a data study of 9 million commercial entities between August 2019 and February 2020. We analyzed 42 million trigger events to determine which ones were the most predictive of credit risk. The analysis was performed on Experian’s Account Monitoring Service commercial triggers which hosts a suite of 99 different trigger events. The credit data that powers these triggers is drawn from Experian’s BizSource database

Our analysis showed that account monitoring is a critical part of managing credit risk. Account monitoring allows businesses to proactively identify and manage risk by receiving alerts when key changes occur on an account, such as a change in payment status or credit limit.

This whitepaper answers common questions such as:

• Which triggers should I use?
• Which triggers are the most predictive?
• What do I do when a trigger occurs?
• Can you tell me the 10 best triggers to use in a risk management program?

There are many different types of account monitoring triggers, but some of the most common include changes in payment patterns, changes in credit utilization, and changes in the number of inquiries on a file. Each of these triggers can indicate a potential change in credit risk, and by monitoring them closely, you can take steps to mitigate any potential problems.