The Fitch Ratings Risk Radar encapsulates important elements of change to better identify, communicate and appreciate macro-economic risks that have an impact on credit conditions across different regions and sectors. Fitch believes a greater cross-fertilisation will improve our ability to put developments in context as they relate to Fitch’s ratings across the globe.

The ability and discipline to prepare and produce the risk radar is a reflection of the broad enhancements and investment Fitch has made, including in its credit policy and centralised research teams. These groups complement the strengths of the analyticalteams and the vast amounts of company and transaction level information evaluated in the rating process. This new approach was initially introduced internally to channel important views that were being shared in monthly credit officer sessions into actionable points that benefit from a broader perspective.

These charts frame the potential impact a development might have, its relative urgency and, ultimately, the number of ratings that might be affected. This approach provides independent and objective views on key credit issues that are channelled back to the analytical teams to help prioritise initiatives, research, and rating reviews to address the most important concerns Offering an external version may help the wider market appreciate events and risks that Fitch is focused on. The report also highlights completed research or initiatives to evaluate these areas of concern.