James Gellert is the Chairman and CEO of Rapid Ratings International, a cutting edge company that enables organizations to more effectively assess the financial health of all types of organizations. But that’s not what makes them innovative. James helped develop a unique, proprietary method that has vaulted Rapid Ratings to the forefront of ratings and risk metrics.
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- James talks about Rapid Ratings proprietary way of looking at data and how it works to foster transparency within their clients’ companies, and why it’s so important to have accurate assessments of financial health.
- How do they handle financial health rating? It’s a 2-part process that starts with the core health score of the company. First, the system calculates 62 ratios of the company’s profitability for the next 2 to 3 years. Part 2 of the process is looking at the resiliency indicators, 11 different elements that take the ratios and results from part 1 and makes a forecast for the next 12 months from a default perspective. James explains what this looks like in practice and the insights that are revealed.
- This innovative process can rate private companies the same way they can rate public companies, which has proven to be a challenge for other rating systems. They help fill the gap that comes with financial statement disclosure and James explains why this matters so much for private companies. With this in mind, Rapid Ratings enables companies to make decisions based on the ratings that will not only help them decide who to do business with, but also, how to build the strongest ecosystem of third-party providers that will thrive into the future.
- When your company is working with suppliers and third parties, what’s often missing is the financial dialogue. James explains how it’s not just about the data; the human touch is equally as important. What should financial dialogue sound like? James explains and shares what he thinks will be the trend in the coming years.
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