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A fundamental responsibility for the credit executive is assessing a customer's credit risk. Based on the risk assessment, a credit professional concludes the length and amount of credit terms, if any--including whether a credit enhancement, such as a personal or corporate guarantee, letter of credit or deposit, may be required. Key to this risk assessment is the credit professional's determination of insolvency risk--and, therefore, the prospects of a customer's bankruptcy filing. Indeed, Dr.Altman's Zscore theory has been used for years as a predictor of a company's probability of filing bankruptcy. A sophisticated credit professional is well aware of the downside with ...