Coverage models need to address three areas of coverage – industries, clients, and risk. The attractiveness and risk of industry groups varies by economic cycles and the nature of the economy. Selection of industries is also a function of where in the supply chain they sit, and the leverage they have. Attractiveness and risk of clients is a combination of owner profile, size, balance sheet and off-balance sheet risk.
The above results in the need to (re)align the sales, RM, branch, customer segmentation, and credit models on a regular basis. Due to Digital, maybe even quarterly.
Cedar can help not only run a fast-track diagnostic on your current coverage model, but also recommend what a new transformed model could look like. Proprietary tools and databases are key to the success it delivers to clients – some of which can be left behind for future use by clients.