In today’s global marketplace, a number of factors make it difficult to act upon an effective global risk management process. https://www.brighttalk.com/webcast/13997/280437

1. Frank Cirillo | Sr. Consultant Advanced Analytics, Dun & Bradstreet
Jack Scarpelli |VP North America Credit Risk Officer, Xerox Corp
Sebastien Lacraz | Global Risk Analytics Director, Xerox Corp
Best Practices
in Global Risk Management

2. AGENDA
Global Risk Management Challenges
Data & Analytics to the Rescue
Introduction to Global Business Ranking
Takeaways
Featured Customer – Xerox

3. Global Risk Management Challenges

4. 4
In today’s global marketplace, a number of factors make it
difficult to act upon an effective global risk management process
D I F F I C U L T Y B R I N G I N G
T O G E T H E R D I S P A R A T E ,
U N S T R U C T U R E D D A T A
N E E D C O M P L E T E D A T A &
P R O V E N B E S T P R A C T I C E S
A D D R E S S I N G C O M P L E X I T Y
O F T E N R E Q U I R E S A
P H A S E D A P P R O A C H
Need common format, consistent field
names and definitions, and the ability to
archive over time to make useful for
predictive analytics
With each country collecting separate
data and setting their own decision rules ,
it is difficult to transition to a set of
credible standards that will be well
adopted
Need a clear path of brining together
internal data, external data, decision
systems and expertise while all along,
working through significant change
management

5. 5
To address theses challenges, D&B’s Data & Analytics
approach is focused on five key areas
G L O B A L C O R E
C A P A B I L I T Y
I M P R O V E M E N T S
I N
T O P M A R K E T S
U S S M A L L
B U S I N E S S
C O M P L E T E N E S S
I M P R O V E M E N T S
P R E D I C T I V E
I M P R O V E M E N T S
G L O B A L S C O R E
C A P A B I L I T Y
I M P R O V E M E N T S
I N
T O P M A R K E T S
E N H A N C E
C U S T O M
A N A L Y T I C S
C A P A B I L I T I E S
- Identity coverage and
accuracy
- Multi-lingual Identity
Resolution
- People data (i.e. digital
marketing) and people
in context of a
business
- Coverage on non-
traditional indicia (i.e.
Tax ID, URL’s)
- Severe Risk analytics
(i.e. business identity
theft)
- Trade coverage
(traditional payment
information)
- Proxies for trade
when and where
trade is not available
- Focus on selected
countries
- Focus on failure,
delinquency and
supplier risk
- Create a Global
Score, with
consistent scaling
- Focus on selected
verticals and selected
solutions
- Offer at different
levels of complexity
tailored to customer
needs

6. Data & Analytics to the Rescue

7. 7
What is Global Archive Data?
D&B Global Archives is a central repository in
which a monthly archived view of key risk data
elements are stored for use by customers and
local markets that are interested in model
development and other analytical activities
There are 240 Global Archive data elements,
that cross ten data categories including:
Not every participating market has every data
element available. For example, while we have
firmographic data for the Netherlands from
2007, trade data is only available in Netherlands
beginning in 2013.We have Failure score for the
Netherlands but not Delinquency score for
this market.
1 . I D E N T I T Y
2 . F I R M O G R A P H I C
3 . L I N K AG E
4 . F I N A N C I A L S
5 . G E N E R A L I N F O R M AT I O N
6 . P R E D I C T I V E A N A LY T I C S
7 . T R A D E
8 . L E G A L & S I G N I F I C A N T
E V E N T S
9 . P RO F E S S I O N A L C O N TAC T S
1 0 . S H A R E H O L D E R S

8. D&B Has Global Archive Data for 25 Countries
D&B OWNED
JOINT VENTURE
CORRESPONDENT
PARTNER OWNED Efforts are underway to add new Global Archive markets
NORTH AMERICA
- Canada
- Mexico
- United States
SOUTH AMERICA
- Argentina
- Brazil
EUROPE-ASIA
- Russia
- Turkey
- China
- Hong Kong
- Japan
EUROPE
- Austria
- Belgium
- France
- Germany
- Greece
- Hungary
- Ireland
- Italy
- Lithuania
- Luxembourg
- Netherlands
- Portugal
- Spain
- Switzerland
- United Kingdom

9. 9
In many countries we are deriving new insights from
new sources to develop new capabilities
E X P O R T D A T A
M A T C H A U D I T
W E B T R A F F I C
C R O S S - B O R D E R I N Q U I R I E S
P A R C E L D E L I V E R Y
I N T E L L I G E N T C H A N G E M G T

10. Introduction to Global Business Ranking

11. 11
Global Business Ranking (GBR) is a multi-dimensional relative risk ranking tool
predicting the likelihood that a business will become inactive in next 12 months
G B R M A J O R B E N E F I T S
B U S I N E S S
A C T I V I T Y
U N A B L E T O
C O N F I R M
O U T O F
B U S I N E S S
I N V O L U N T A R Y
O U T O F
B U S I N E S S
V O L U N T A R Y
• 100% Coverage on all records in D&BWorldbase file – customer will be able to make a decision on each business
• Consistency – for multinational portfolios, it provides consistent measurement of Risk across the globe
• Convenience – Single Score Append; Single Team that supports the score
• Addresses Relative Risk between countries by incorporating Macro-Economic Data
• Incorporates D&B Proprietary Signals Data not utilized in other scores
• Includes Data Depth component that provides transparency into data driving the score

12. 12
Businesses are assessed based on varying levels of data depth
D E R O G A T O R Y D A T A
T R A D E
F I N A N C I A L S
F I R M O G R A P H I C S
S I G N A L S
M A C R O
L O C A L
C O U N T R Y
W O R L D B A S E
GBR segments the population
based on depth of data.This
design allows us to take a broad
based approach and the ability to
score all records in our database.
PREDICTIVE DESCRIPTIVE
GBR overall rating
Depth of data D&B has
on the business
9 G
1 -15 A – G/(H-R)

13. 13
Data Elements for Standard Predictive Scores
F I N A N C I A L S
- Liquidity/ Cash
- Solvency
- Profitability
- Late filing/ age of accounts
E C O N O M I C I N D E X
- Reflects risk to specific
industries during different
economic conditions
D E M O G R A P H I C S
- Age & Size of business
- Primary industry sector
- Number of employees
- Geographic Region (location
& trading)
P R I N C I P A L S
- Number and experiences
- Associated Failures
T R A D E P A Y M E N T S
- Payment score trends (PAYDEX)
- Percent of trade experiences paid
promptly or beyond terms
- Volatility of payments
P U B L I C
D E T R I M E N T A L
- County Court Judgements
- Mortgages & Charges
L I N K A G E
- The size, strength & risk of a
group of businesses as a whole.
G B R A N D
L O C A L M A R K E T
D E L I N Q U E N C Y &
F A I L U R E S C O R E S

14. 14
47.20%
8.44%
7.52%
5.22%
3.87%
3.87%
3.76%
3.75%
% A C C O U N T S
• 95% of the accounts are from 15 countries with USA contributing nearly 47%
• $500+ million portfolio with ~77% of the exposure are from USA and 22% from 14 other major markets
76.86%
6.44%
2.29%
% E X P O S U R E ( I N A M T )
USA
ENGLAND
FRANCE
GERMANY
BRAZIL
ITALY
SINGAPORE
NETHERLANDS
CANADA
INDIA
SPAIN
AUSTRALIA
SWITZERLAND
SWEDEN
Other Countries
Case Study: SBM Software Portfolio – Accept/Reject New
Applicants and Assign Credit Lines

15. 15
Adding GBR and New Scorecard Segmentation Significantly
Improves Coverage of Scored Accounts and Predictive Performance
US &
CANADA
COUNTRIES
WITH FSS
COUNTRIES
W/O FSS
WEIGHTS (%) WEIGHTS (%) WEIGHTS (%) WEIGHTS (%)
Bankruptcy Date 10 16
Collection Count 2 14
PAYDEX 12mons 6 11
DBAi Failure Score (Score) 15 17
DNBi Failure Score (Fin. Stress Score)
Delinquency Score (CCS) 30 4
Years in Business 6 13
Sales Indicator 2
Public/Private Indicator 2
Cash Ratio (Calculated Ratio) 5 12 12
Net Income 4 4 7
Tangible Net Worth 3 11
Current Ratio 3
Total Debt to Tangible Net Worth 3
Current to Total Liabilities 2 12
Sales to Trend 2
SIC Industry 15 17 33
GBR Score 14 16 32
Employee Count 11 14
D&B PROPOSED SCORECARD
PRODUCTION
SCORECARD
VARIABLES
20
New variable in the modelExisting variable used in the model
47.08%
97.77%
24.68%
35.57%
0%
20%
40%
60%
80%
100%
Production D&B Proposed Scorecard
EXCLUDING US AND CANADA
Coverage of accounts at 60% score
weight threshold
Performance (capture bad at the worst
20%)

16. Let’s hear from Xerox

17. 17
Xerox Overview
Standardize Global Commercial
Credit Functions Across NA and EU
Modernize Default Scorecard to
Support Increase Auto Decisioning
on <$250K
Data Integrity Cultural Change Regulatory Inconsistent Evaluations
CHALLENGES:
Focus Manual Reviews on
Borderline, Critical Cases

18. 18
Overview of Xerox’s Global Risk Management Approach
1
2
4 Internal AR Data maintained at the local market levels with varying rules and
processes.
3
65% of commercial business in the US and 35% crossing over Canada and EU –
majority of volume in 18 counties.
Auto-decision rates ~75% in US and ~25% outside of US. Need for better
segmentation with focus on increasing approval rates while minimizing losses.
Regional Credit Managers and analysts using different data providers, scoring scales,
and platforms – process must accommodate multiple data sources with a goal to get
to one consistent platform.

19. 19
It’s a Journey! What’s Next?
1
2
4
HEAVY LIFTING - Collecting, correcting, and organizing data requires time and close
collaboration.
3
UNIVERSAL PLATFORM – Technology improvements planned for 2018 to support
new, consistent auto-decision process.
REGION BY REGION - New scorecard for Canada and UK now in-place followed by
German, Italy and Benelux. US and other EU Regions – complete byYE2017.
REPLICATE BEST PRACTICE – Statistical, high performing new account and behavioral
scorecards implemented in US for many years prior to 2015. In 2015, initiated global
scorecard development project.

20. Takeaways

21. D&B Analytics has driven powerful results for our customers
15-20%
Reduction in DSO
Reduce decision
cycle time by
10-12 days
Improved Coverage Added Precision Improve Cash Flow Accelerate Sales
Achieve 100%
Score Coverage
Increase predictive
performance
25%

22. 22
Q A

23. Presenter Contact Information
FRANK CIRILLO
Director,Advanced Analytics
Dun & Bradstreet
cirillof@dnb.com
+1-973-921-5864
JACK SCARPELLI
VP, North American Chief Risk Officer
Xerox
Jack.scarpelli@xerox.com
+1-847-928-5180
SEBASTIEN LACRAZ
Global Risk Analytics Director
Xerox
Sebastien.lacraz@xerox.com
+0033-648965317

24. ThankYou!