Vengroff, Williams and Associates Leads Innovation to Automate and Standardize EU Credit Risk Management Solutions

GARDEN GROVE, CA — Vengroff, Williams and Associates, Inc., the leading provider of order to cash and business process outsourcing solutions, today announced the launch of its Pan-European Risk Management Division, dedicated to providing robust credit risk evaluation and analysis software solutions that will cover over 1 million European private and public firms. In recent months, the economic downturn has affected Europe in ways that are not similar to those being experienced in the North America, with specific reference to credit insurance. Currently, North American-based companies using credit insurance number around 7%. In Europe, more than 85% utilize credit insurance.

Traditionally, companies doing business in Europe and in Asia-Pacific have defined risk rather narrowly, with the focus primarily on factors such as credit, liquidity and compliance. Risk management — specifically credit risk management — does not exist in Europe to the levels of sophistication as it currently does in North America. The tools and the expertise are not available in Europe and credit risk analysis, as a stand-alone solution, has traditionally been handled by credit insurers, who are currently under siege and in some instances, bankrupt due to the enormous burden brought about by the heavy default within the current recession.

To date, there are currently few if any, standard risk measurement tools tailored specifically to Pan-European markets. However, in light of the current economic crisis and with risks emerging on so many fronts, CFOs must now be capable of evaluating a growing list of market, geopolitical and operational risks as well.

"We are extremely focused on the role that we can play in the evolution of credit risk management solutions throughout Pan-European countries to automate and standardize the process of accurately predicting and monitoring credit risk. VWA’s work in this area over the last decade has consistently underlined the value to the marketplace of quantitative credit rating tools," said Robert G. Williams, Vengroff, Williams & Associates, Inc., chairman of the board. "We can now help to create a Pan-European rating standard serving the interests of financial institutions, borrowers, and investors alike. This will enable businesses to align with the direction of regulatory capital reform, accelerate the growth of credit liquidity, and improve overall market efficiency."

According to Vengroff, Williams and Associates, Inc., financial executives must continuously balance the cost of doing business with the risk of doing business. Each time a dollar of revenue is produced — all costs of generating that dollar have been thoroughly analyzed in an effort to maximize the profit margin, including costs associated with accounts receivable management. However, the hundreds of billions of dollars in losses associated with bad debt charge-offs in the past 12-18 months due to the recession has brought new attention to managing trade receivables from a risk perspective.

Accounts receivable, which typically represent more than 40% of a company’s assets, are naturally a vital component of a healthy business. If a major customer is unable to pay its obligations, or if several customers are unable to pay their invoices, there will be a negative impact to cash flow, earnings, and capital. In a worst-case scenario, this could literally put a company out of business.

In the face of today’s challenged economic climate, recognizing and managing future risks has become a priority for VWA’s global clients. By providing the innovative solutions needed to control and monitor the risk of credit in European countries, where more than 85% of businesses utilize credit insurance, VWA provides:

• Pan-European Credit Risk Management software to automate and standardize the process of accurately predicting and monitoring credit risk
• SOX complaint policies and processes for credit risk management tailored to clients’ needs & risk strategies.
• Credit Risk Analysis Resource
• Credit Bureau Reporting
• ERP reporting and monitoring processes to validate compliance
• Consulting Services dedicated to: credit policy, process and technology to minimize risk and maximize sales

    
VWA brings extensive domain and technology expertise to Pan-European firms with the goal of solving problems through the ability to provide global BPO solutions to Fortune 1000 companies. VWA’s international vertical channels of focus are specifically: Technology, Direct to Retail and Home Entertainment. With the company’s European corporate headquarters based in London, branch offices throughout the EMEA (Paris, Munich, Milan, Amsterdam, Madrid, Frankfurt and Stockholm) and a presence to be seen in China in the summer of 2009, VWA services over 25 global clients and its revenue growth in the Pan-European regions is predicted to be approximately 32% in 2009.

About Vengroff, Williams and Associates, Inc.
Founded in 1963, and with over $23 billion dollars under its management, Vengroff, Williams & Associates, Inc. is a leading provider of order to cash and business process outsourcing (BPO) solutions for Fortune 1000 companies such as Ford Motor Company, Federal Express, Kodak, Microsoft, Oracle, Cisco, PPG, Yamaha and others.

Applying state-of-the-art proprietary information systems, best practices technology, work flow and talent management to realize cost reductions, operating efficiencies, and improved process design, Vengroff, Williams and Associates’ approach enables clients to easily insource or outsource all or part of the quote-to-cash function. Solutions are customized to each client’s requirements or expanded to incorporate specialized tools and SAS 70 compliant processes and procedures.

Services include full order to cash processing, third party collections, EIPP systems, deduction management, dispute management, auto cash solutions, front-end risk mitigation, and tax resolution. To learn more about the award-winning Vengroff, Williams and Associates, please visit www.vwainc.com or telephone (866) 393-4892.