The credit management industry is forever evolving. It evolves with technology, it evolves with industry developments, and it evolves with applicable regulatory legislations. It is a credit manager’s main priority to grow as a professional with these evolvements to ensure that they are adapting to the demand of clients, capital and business profits.
However, along with an increase in developments comes an increase in risk. Identifying these risks early, and effectively minimising them by utilising the best resources speaks volumes. Especially in the credit management industry.
Using Comprehensive Data
One of the most under-utilised and misunderstood resources is that of the use of comprehensive data to help manage quality and minimise risk. It is the one tool that can accurately confirm statistics, increase standards and encourage transparency. All of which can be used to develop trusting relationships and grow with credit management industry expectations.
David Hunt, Credit Manager of Fuji Film Australia, agrees that comprehensive data is a tool that should be used more frequently by credit managers. ‘It is important to manage data standards and policy’, Hunt said ‘ This ensures transparency and openness within organisations.’
With extensive experience within the credit management industry, it is hard to look past Hunt’s advice.
It’s all about making more informed decisions about credit risk, and utilising the data that credit managers have available to them.
Making your job easier
Under changes in the applicable credit reporting legislation, the Privacy Act (1988) allows for data to be collected in regards to credit limits, types of credit applied for in the past, substantial credit history, as well as the specific dates that an account was opened or closed. This means that the job of a credit manager is made a lot easier, allowing for risk to be accurately assessed and consequently minimised.
‘It’s important to get credit managers to hand over their Aged Trial Balance and increase the standards of credit reporting’ says Hunt.
If there was to be a shift in stereotype surrounding the release of comprehensive credit reporting, data and aged trial balance data, the time is now. It’s a useful and powerful tool when used correctly.
Hunt concurs that this is also the key to moving alongside the fast-paced developments of the credit management industry, which has seen the boom of automation and credit management software services in recent years.
“It’s all about building a fence at the top of the mountain, rather than having an ambulance waiting at the bottom.”
Minimising risk should be the bottom line for any credit manager. The tools are there and it’s time to use them.
*David Hunt Bio:
David Hunt is the Credit Manager of Fuji Film, Australia. With extensive experience in credit management in both New Zealand and Australia, David holds qualifications in both Business and Management. He also volunteers on the AICM council as part of the Professional development and Membership Committee.