Your company has been invited by our mutual client to join the FHR Exchange in an initiative to better understand the financial health of their suppliers, vendors, and counterparties. The FHR Exchange allows our clients to standardize the way they analyze their suppliers’ financial health.
By working with RapidRatings to join the FHR Exchange and produce a Financial Health Rating of your company, the benefits are two-fold. You not only foster a more transparent business relationship with your client, but you also have the opportunity to learn more about your own company’s financial health. Additionally, as a member of the FHR Exchange, you will have full control over your FHR and associated reports.
Our clients use Financial Health Ratings (FHR) to manage the risk of their business partners. In most cases, this request for you to share your FHR is part of a larger risk management program being implemented across the supply chain and your firm is in no way being singled out for scrutiny.
The FHR is not viewed in a vacuum and assists our clients in systematically assessing hundreds or thousands of counterparties on a standardized basis in order to initially identify where financial distress is most likely to occur. The FHR provides a neutral starting point for a larger conversation with your client and permits a proactive rather than reactive approach.
For additional information about the value of FHR Exchange membership, we recommend watching our Membership Introduction Video.