Credit Risk in a connected world
Trade credit risk in a delicate globalised world has become an increasing concern for the business community. Fresh from the memory of the massive credit fallout beginning in 2007, the global economy has now once again plunged into fears from the problems besetting Europe and USA.
History has been made with the downgrading of USA sovereign credit rating. Sovereign debts holders (mostly financial institutions), concerned with their balance sheet over the possible defaults, are restricting their lending further. This may well lead to another credit crunch spreading across the globe, resulting in a chain reaction of corporate default and insolvency.