Credit Manager Magazine 9/2021

37 CREDIT MANAGER MAGAZINE WRZESIEŃ / SEPTEMBER 2021 The Future of Credit Management The Federation of European Credit Management Associations (FECMA) was founded in 1986 promotes the development of the profession of the credit manager around Europe. Among the strong network of institutes and associations, we encourage and promote research, study, knowledge, and the publication of that knowledge, relating to all aspects of credit management. In that article, Danny Kaltenborn, the President of the Association for Credit Management Switzerland (ACMS) explains how his organization helps its members in the credit management profession. Danny Kaltenborn ACMS President The classic credit management process is di- vided into: - Credit Risk Management (assessment of the risk of bad debts) and the - Collection (handling of outstanding receiv- ables) The collection process will become more and more simplified as improved elec-tron- ic payment processes emerge with the help of electronic currencies. In this context, we remember the terms blockchain and crypto- currencies . In the future, we can expect central banks to offer these forms. Working groups have al- ready been formed for this purpose in many countries. Thus, these new forms will gain legitimacy . Credit risk management will be inte-grated into the blockchain and become a central component of the decentral-ized risk mitiga- tion process. As a result, processes are being restruc-tured and redefined. Up to now, rating agencies, credit insurers and other in-formation ser- vice providers have used analysts to fill large databases and make the processed and evalu- ated infor-mation available to users for a fee. This information may also be part of the blockchain in the future. However, new forms are also being developed. One of these is the use of a Credit Risk Robo-Advisor A credit risk robo-advisor is part of the blockchain, but does not contain any data. These are provided by the users themselves, as they know which data is relevant. Thus, the informative value of the assessment is im- proved and the risk of bad debt is mitigated. Finally, the entire credit management pro- cess is automated. This leads to low-er risk mitigating costs with the same or improved quality. Under the motto From credit managers to credit managers the ACMS develops various practical offers. The ACMS is the platform for national and international contacts and the place to build and expand one’s own network in the cred- it management pro-fession. In addition, the ACMS maintains relationships with credit management associations abroad, such as the BvCM e.V. in Germany or the FECMA, the Eu-ropean umbrella organization or the FCIB (world association). Members of the association have access to this network, free access to events such as the Virtual RoundTable or the Swiss Credit Man- agement Forum. The Generally Accepted Credit Man-age- ment Principles (GACMP) are avail-able to our members free of charge. Also, the association offers training with the receipt of the Certificate of Exper-tise in Credit Management. The Association has published a book de- scribing Best Practices in Credit Risk Management It includes a standard policy, procedures and contracts, performance measures, credit scor- ing models and reporting tools, as well as im- portant sources of information and definitions. Credit Risk Management – Code of Best Practice Members of the Swiss SME Association re- ceive one annual membership free of charge. Become a member! Association of Credit Management Switzerland www.creditmanager.ch Danny Kaltenborn The Association for Credit Manage- ment Switzerland (ACMS) aims to further establish and professionalize credit management in Switzerland. Credit management should become an inte-gral part of Swiss companies. FECMA