The PICM Risk Index © indicators are based on long-term time series of business tendency trends provided by the Polish Central Statistical Office. The PICM Risk Index © ranges from 0 to 100, where the higher the value of the index, the higher the risk of insolvency of companies in a given industry. It is assumed that a significant risk arises when the indicator exceeds 50 points.
The purpose of the PICM Risk Index © is to supplement the detailed solvency analysis of a single enterprise with a more general risk measure, the risk of the industry in which the enterprise operates. This can be compared to the fundamental analysis of a listed company where the end result is the determination of the value of the enterprise (share). At the end of the credit analysis, we define the risk class. The stages preceding this are basically the same, i.e. analysis of the financial standing, analysis of the macro-environment and the industry environment. The PICM Risk Index © gives a picture of risk just for the industry environment. The interactive graphics below show sample PICM Risk Index © presentations for selected industries.
Detailed PICM Risk Index © readings are available for logged in PICM Associate (PICMa) in the Credit Manager Area.