Due diligence for risk management.

In an ideal world, credit managers would only grant credit to sterling, rock-solid customers--decisions would he straightforward and defaults would be rare. Sadly, the reality is that most companies are obliged to sell to excellent, fair and even some marginal prospects that may present less-than-ideal credit profiles. Managers can take some comfort in the available risk management toolkit that includes such props as Uniform Commercial Code (UCC) filings, insurance and derivatives. However, they still cannot evade responsibility for thorough analysis and prudent decisions.

Caveat, credit manager: those bells and whistles should never replace nor substitute for ...