Assessing Exposure: A Tool for Managing Consumer Credit Risk
MEDIA
Ian C. MacMillan, Wharton professor and director of the Sol C. Snider Entrepreneurial Research Center, addresses the growing threat of consumer debt. He introduces a practical analytical tool designed to help organizations segment their customer base, assess credit risk exposure, and anticipate financial shocks before they hit.
THE SOLUTION
In this session, learn how to protect your organization from the looming risks associated with heavy consumer debt. Wharton Professor Ian C. MacMillan explains why even a small rise in defaults can cripple businesses—including those that don't sell directly to consumers—and offers a solution to mitigate the danger.
MacMillan presents a simple yet powerful framework for treating risk just like demographics. By using the analytical tool described in this video, managers can effectively "segment" their customers based on credit vulnerability to contain potential losses.
