From the November 2010 issue of Treasury & Risk magazine

Bronze AHA Winner in Credit Risk Management


In response to the financial crisis, Omnicom Group, the New York City-based parent of more than 1,000 largely autonomous advertising and marketing communications companies worldwide, centralized, automated and beefed up its credit risk management. The company saw its accounts receivable past due by more than 60 days drop by $200 million, shrinking those delinquencies from 13.4% to 9.9% of the portfolio. Bad debt write-offs were held to 0.4%, the same level as in 2008 and earlier years.

"The program now entails a standard global approach to credit management, credit insurance and working capital reporting on a straight-through basis for Omnicom, its networks and its agencies, enabling more timely and comprehensive communication of financial risks," notes Maeve Robinson, Omnicom's assistant treasurer.

Comments

Advertisement. Closing in 15 seconds.