FHR Exchange members control what their clients see when sharing the FHR. The choice is made at the report-type level: members can share the FHR Report (full transparency) or the Summary Disclosure Report (limited transparency). This article describes the two report types, the level of detail each contains, and how members access their own financial health data through the FHR Exchange portal. Sample reports are available to view upon request.
The FHR Report — full transparency
The FHR Report is the most comprehensive form of disclosure. It contains the Financial Health Rating (FHR), the Core Health Score (CHS), and the Estimated Probability of Default (EPD) along with the underlying financial statement data used to produce the rating.
In addition to the rating itself, the FHR Report includes current and historical analysis of the company's financial strengths and weaknesses with peer comparisons; full balance sheets, income statements, and cash flow statements; liquidity, activity, and cash flow ratio analyses; and simulation of the effect of abnormal items. The FHR Report is the appropriate choice when a member wants the receiving client to have full visibility into the financial data behind the rating.
The Summary Disclosure Report — limited transparency
The Summary Disclosure Report is a limited-transparency alternative to the FHR Report. It conveys the FHR, CHS, and EPD without exposing the underlying financial line items used to produce the rating.
The Summary Disclosure Report is the appropriate choice when a member wants to demonstrate financial strength to a client without disclosing detailed financial statement data.
Choosing the disclosure level for each client
The report type is selected separately for each client that has a share with the member. A member can share the FHR Report with one client and the Summary Disclosure Report with another. The disclosure level can be updated at any time within the Manage Sharing section of the member's account.
How members access their own financial health data
Members do not view their own financial health data in the same report formats that clients receive. The FHR Exchange portal provides each member with a dynamic view of their financial health on the View My Financial Health page in the portal. The dynamic view is always available to the member and is independent of any share decisions made with clients. The FHR Report and Summary Disclosure Report formats apply only to what is shared externally with clients.