Counterparty Risk Assessment
Counterparty risk is not a score in isolation. The assessment combines what the buyer is, how the relationship behaves, what the exposure could become and how quickly GGA would know if conditions deteriorated.
Build the exposure picture first
Start with legal identity, group relationships, operating footprint and the exact entity that owes the money. Then connect that identity to credit terms, open orders, unpaid invoices, security, concentration and any dependency on one plant, project or government contract.
Read behaviour alongside external facts
Payment behaviour
Compare agreed terms with actual payment rhythm, broken promises, deductions and unexplained changes in remittance pattern.
Business signals
Consider management changes, litigation, shutdowns, restructuring, funding stress or unusual requests only when the source and relevance can be established.
Exposure trajectory
Measure what happens if current orders continue while older invoices remain unpaid. Risk can rise even when the overdue balance looks stable.
Decision, not dossier
The assessment should end with a commercial decision: continue normally, tighten terms, cap exposure, seek evidence or security, pause supply, or escalate an existing receivable. The reasoning and unresolved facts should be visible so management knows what would change that decision.