We analyze risk across economic sectors to provide with you valuable insights and inform your decisions, helping you to trade with peace of mind.
Download our latest sector report below that focuses on the AI evolution
Sector Risk Reports
We analyse risk across economic sectors to provide you with valuable insights and inform your decisions. Our expertise is your best business ally.
Featured Sector Report: High Tech
What is a Sector Risk Analysis?
A sector risk analysis measures the economic and financial condition of a given a sector. The analysis provides information on the risk of non-payment by companies within a specific industry. The sector reports are designed to complement our country risk analysis to help you trade with peace of mind.
How is Sector Risk Rated?
Our sector risk analyses are based upon a forward-looking evaluation reviewing four key determinants: demand, profitability, liquidity, and business environment. Each sector then receives a grade based on a four-level scale from low to high.
Four Components Analyzed on a Global Scale
- Demand: outlook for companies’ turnovers based on the organic growth, fundamentals, and price competition of the sector.
- Profitability: outlook for companies’ margins and profits depending on the evolution of prices in raw materials/commodities, on labor costs and fluctuations in supply and capacity.
- Liquidity: outlook for companies’ cash positions and financing risk, based on access to financing and payment performance.
- Business Environment: any technological innovations, new government subsidies and changes in legal framework that can alter business models and companies’ strategies.
Four Levels of Sector Risk
- High Risk: imminent or recognized crisis
- Sensitive Risk: structural weakness, unfavorable or fairly bad outlook
- Medium Risk: signs of weaknesses and possible slowdown
- Low Risk: sound fundamentals and very favorable or fairly good outlook
