INFORMA's Resilience Index, increased security for financial analyses.

One of the most important aspects at Inversa are the financial analyses we conduct when publishing an invoice. We primarily analyze the paying company (drawee), and for this, we rely on external data from INFORMA, from which we extract solvency data, debt levels, scorings (rating, liquidity scoring...). From now on, we can also consult the "Resilience Index" of each entity.

What is the "Resilience Index" according to INFORMA?

It is the ability of the analyzed entity to cope with an exceptional and unforeseen situation, with a significant impact on the productive process and/or capacity of the entity.

It is a Ranking that is updated daily and is limited to the moment of the evaluation.

The index ranges on a scale from 1 to 100 and the scale is divided into five values:

• High risk
• Medium-high risk
• Medium risk
• Reduced risk
• Minimum risk

This index provides very useful information by itself to measure the impact of Covid, but by crossing it with other variables such as "sectoral impact" it is possible to further enhance this measurement.

Therefore, it is another supplementary analysis tool that allows us to adapt to current circumstances.

Some of the factors that can influence this index are:

• The Flexibility: A very large and rigid structure entails a cost that is difficult to maintain in a crisis context.
• The Adaptation capacity: productive, logistical, technological, team's own adaptation...
• The Financial muscle of the entity.
• The Business consolidation level.
• The investment in R&D.

And in the case of foreign companies, the legislative policy of the country or the security level can also influence.

All are aspects that go beyond an analysis of accounts and for those of us working in finance, it represents added value that we transfer to our investors by offering them greater security.

At Inversa we are already using the resilience index along with other variables, such as the sector of activity, to measure the Impact of Covid-19. Thus, the primary food sector, healthcare, or online services, to name a few examples, have not only been unaffected, but have emerged stronger in many cases.

There is no doubt that new times require new measures, and the "Resilience Index" is one of them.