Predictive Analytics Market to Grow, Says RapidRatings

RapidRatings, a leader in “financial health” analytics for public and private companies, continues to track the trend of investment in risk management technologies across all industries and business areas.

Along with several prominent industry analysts, they note the increasing role of board level and operational professionals' interest in risk management has accelerated growth in the predictive analytics market that is expected to reach $9.2 billion by 2020.

“We challenge leading commercial, industrial and financial services firms around the world to build business relationships founded on new standards in financial transparency,” says James Gellert, chairman and CEO of RapidRatings.

The company's proprietary Financial Health Rating (FHR) is a predictive analytic represented by a 0-100 score that reflects a company’s current financial health and predicts its future condition by projecting its long-term financial viability, short-term resiliency, and probability of default.

RapidRatings' analysis relies solely on financial statements to deliver what it describes as “a tailored and unbiased outlook” about the financial health of a company's public and private third-party logistics partners. This group includes carriers, suppliers, vendors, and securities issuers.

“Unlike traditional methods of using payment history, data aggregation, or market inputs to predict a company's future performance, the forward-looking analysis of the FHR allows companies to identify financial stability or financial decline 12 months out and beyond,” says Gellert. “This gives logistics managers a new set of forecasting analytics to manage risks and take advantage of new opportunities.”

Currently, clients and expanded existing relationships in multiple industries include financial services, insurance, aerospace & defense, manufacturing, automotive, biotech, energy, food and beverage, financial services and retail.

Logistics managers might have found some comfort in knowing that Maersk is judged as a “medium-risk” player in the ocean cargo industry, says Gellert. “Had the same typed of cyber-attack been launched on Hanijn two years ago, it would have hastened that company's bankruptcy,” he adds. “We not only want to help shippers avoid weak supply chain partners, but also identify the strong ones who can be integrated into that transport ecosystem.”

Download the full report here.

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