What is the RiskScore?
The CreditorWatch RiskScore:
Provides an indication of an entity’s creditworthiness
Predicts the likelihood of insolvency or failure in the next 12 months
Each entity is ranked using:
14 credit ratings (from A1 to F)
A numerical score from 0–850 (higher score = lower risk)
Why do we update the RiskScore algorithm?
We update the RiskScore algorithm to make it more accurate and predictive. Improvements are based on:
New data sets and technology
Historical events and risk factors that influence insolvency
How often is it updated?
The RiskScore algorithm is updated regularly, depending on:
Availability of new data
Advancements in technology
Market trends and insights
CreditorWatch only releases updates when changes are substantial enough to improve accuracy without causing unnecessary disruption for members.
What has changed?
Recent changes to the RiskScore algorithm include:
Business Classification | More precise classification of ‘Large Business’. |
Trusts | Addition of more specific trust segments used to calculate RiskScore |
Defaults | Weighting of defaults to calculate RiskScore has been recalibrated to consider recency of default registrations and number of unique claimants. |
Cross Directorships | Nature of cross directorships now contribute to RiskScore calculation |
ANZSIC Codes | Addition of more precise industry classifications used to calculate RiskScore |
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