Beyond Boundaries: Inside Baker Ing's Prague Summit
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Inside Baker Ing's Prague Summit
At Baker Ing, our annual global meetups are a cherished tradition, bringing our decentralised team together to celebrate achievements and strategize the future. Our latest gathering in the historic and vibrant city of Prague was a testament to the commitment and teamwork which the team demonstrates every day. This event provided a vital opportunity for team members who usually connect remotely to meet in person, fostering stronger bonds and alignment.
We firmly believe that we stand at the forefront of a paradigm shift in managing high-value and sensitive accounts receivable. Our approach is underpinned by a commitment to precision, expertise, and most importantly, adaptability to the unique demands of each client. It’s a sophisticated service, delivered with an assurance of discretion and efficacy that only a dedicated innovator in the field can provide.
In doing so, we thrive on the vast opportunities presented by a world without walls, and it’s this philosophy which has helped to forge our very operational model—a deliberate and strategic embrace of remote working that harnesses the power of technology and the best minds in credit management, regardless of their physical location.
This is not a mere trend of the digital age; it is a thoughtful operationalisation of efficiency and expertise, ensuring we are always within reach, ready to serve our clients with speed and agility. It is this unique combination of global reach and personal touch that sets us apart, providing our clients with a service that is as reliable as it is revolutionary.
Prague in Focus: A Day of Insights and Innovation
Our latest event in Prague commenced with a relaxed gathering at the Don Giovanni Hotel, where the team enjoyed a light buffet and casual conversations, setting a collaborative tone for the day. Following the meal, we convened in the hotel’s conference suite for a series of workshops and brainstorming sessions, including an insightful session from our economist, Markus Kuger, bringing the wider team fully up to date with global developments. We also delved into current projects and explored innovative approaches to managing our clients’ accounts, interspersed with coffee breaks, enjoying the Prague skyline and a lot of conversation.
Post-workshop, the team moved on to the Vinohradsky Parliament for a well-deserved dinner, where the relaxed atmosphere encouraged deeper personal connections and shared reflections on the day’s learnings. The evening culminated at the Puerto Rico Cafe & Cocktail Bar, where we enjoyed the specially crafted “Baker Ing Cocktail,” celebrating the day’s successes and the strengthening bonds.
The ideas refined and developed in Prague are already enhancing our service delivery, with clients benefiting from the team’s alignment and invigorated approach. It was another great day which reaffirmed our commitment to operational excellence and client satisfaction but, also, celebrated the diverse and talented individuals who make our success possible.
Remote Power: Baker Ing’s Global Impact
By harnessing remote expertise, we position ourselves to offer clients a team that combines global reach with local insight. This model ensures that each project is handled by the most suitable experts, who bring both detailed regional knowledge and specialised skills to the table. This strategic deployment of resources is key in effectively managing the high-value and sensitive accounts that our clients entrust to us.
Recognising the geographic spread of our team, we carefully design meetups to reinforce strategic alignment, ensuring that despite the physical distances, our mission, goals, and tactics remain in perfect sync. The events facilitate face-to-face discussions, allowing for a rich exchange of ideas and fostering a shared understanding. Moreover, they are pivotal in reinforcing our culture of collaboration and transparency. It’s an opportunity for team members to connect on a personal level, which is essential for building trust and reinforcing the bond that ties our global operations together. This enhanced team cohesion helps us maintain the high standards of service that clients have come to expect from us.
The collaborative and diverse environment fostered by our model directly translates into tangible benefits for clients. The approach harnesses the collective intelligence of a globally distributed team, allowing us to quickly adapt to the changing dynamics of international markets and regulations. Such agility is vital in a commercial environment where understanding both global trends and local nuances can make a significant difference to outcomes.
For our clients, this means a service that is innovative and deeply informed by a broad spectrum of economic, cultural, and regulatory insight. Each account strategy is meticulously crafted to maximise recovery rates whilst adhering to the highest standards of compliance and ethical standards. The result is a service that not only meets but often surpasses client expectations, providing peace of mind and the assurance that receivables are managed effectively and with integrity.
Wrap-Up
As we reflect on an inspiring gathering in Prague, we extend a heartfelt thank you to every member of our team whose dedication makes these events so successful. Special appreciation goes to Claire Goode and also Alfredo Lopomo, whose local knowledge was invaluable in organising this memorable day. Prague, with its rich history and vibrant culture, provided the perfect backdrop for our strategic discussions and team bonding.
Our global meet-ups are not only enjoyable but pivotal, reinforcing strategy and amplifying our team’s potential. They are celebrations of our collective achievements and dynamic forums for innovation and forward-thinking.
The events underscore our commitment to ensuring that every member of our decentralised team is aligned and fully engaged in our mission to deliver unparalleled service.
We invite you to engage with our team and experience first-hand how Baker Ing’s unique approach to remote teamwork and client service can revolutionise your receivables.
Where should our next global meet-up be? Let us know in the comments! We’re excited to see your suggestions.
Industry-Changing Appointment
Baker Ing Welcomes Global Order to Cash Expert John Kelly to spearhead collections innovation.
Baker Ing announces the strategic appointment of John Kelly as Global Order to Cash Consultant. Kelly’s unparalleled expertise in operational efficiency and financial objectives introduces a transformative edge to Baker Ing’s already robust client offerings.
John Kelly, renowned for his multidisciplinary business acumen, has joined the Baker Ing team from Ireland. Formerly Global Process Lead and Senior Consultant, He brings to the table experience that ranges from establishing GBS green field operations for Fortune 500 companies to driving existing GBS systems to the next level, specifically within the key work streams of O2C, P2P, and S2P in both centralised and decentralised business models.
What sets Kelly apart is his unique capability to seamlessly integrate technology into operational processes. Specialising in ERP/AI/Robotics Design and implementation, he has mastered the art of fusing technology and human expertise for optimum cost control and efficiency. His robust approach to risk identification and mitigation fortifies Baker Ing’s commitment to data-driven performance and sets new benchmarks for quality and reliability in the sector.
Kelly’s strategic vision is poised to enrich Baker Ing’s current portfolio, propelling the firm further into its role as a market leader for complex and high-value collection solutions. His multidimensional skill set—from business development to financial planning—is perfectly aligned with Baker Ing’s culture of excellence and will be integral to the firm’s continued success.
“John’s appointment signifies more than a new team member; it represents the next evolutionary step in receivables management. We’re not only expanding our team but also redefining what efficiency and client-centric can mean in our industry,” says Lisa Baker-Reynolds MCICM, CEO, Baker Ing International.
Welcome to the team, John.
📣 Baker Ing Bulletin, 22nd June 2023
Here are our top five stories impacting the world of credit this week.
1️⃣ Interest Rate Hikes Continue: The Bank of England Strikes Again 🇬🇧💰
The Bank of England continues its trend of hiking interest rates, with today likely marking the 13th consecutive increase. For credit professionals, this signals a tightening credit environment. Increased rates mean higher borrowing costs, potentially exacerbating default risks for individuals and businesses. Lenders need to revisit their risk assessment models to reflect these macroeconomic changes.
2️⃣ UK Mortgage Rate Soars: A Decade High of 6% 📈🏡
The two-year UK mortgage rate has risen above 6% for the first time since 2008, signifying a trend towards stricter lending practices. This development can impact the overall creditworthiness of mortgage borrowers, as higher rates might result in a larger number of defaults. Credit professionals should recalibrate their models to account for potential credit rating downgrades, especially within the housing sector.
3️⃣ China's Grip on UK's EV Future: A Cause for Concern? 🇬🇧🇨🇳🔋
The UK's deal with China's Envision for battery production might increase economic interdependence. However, reliance on a foreign supplier poses credit risks if that supplier faces financial instability. Credit professionals dealing with the auto and EV industries should closely monitor Envision's financial health and assess the potential ripple effects on their clients.
4️⃣ No Government Life Raft for UK Households 🇬🇧🏦
As mortgage rates soar, the UK government's decision not to offer direct support to households exposes financial institutions to a heightened risk of loan defaults. Credit professionals must brace for potential downgrades in consumer credit scores and prepare for a potential rise in bad debt provisions.
5️⃣ Open Floodgates for COVID Insurance Claims? ⚖️🦠
A recent High Court ruling might trigger a new wave of COVID-19 insurance claims. This increases the financial liabilities for insurance companies and impacts their creditworthiness. Credit professionals should keep a close eye on the insurance sector's response to this ruling, as increased liabilities could affect their ability to meet financial obligations.
Guided by The Past: A Stoic Philosophy for the Modern Credit Professional
There are moments in life, particularly amidst unprecedented challenges, that nudge us to seek wisdom beyond the superficial layers of our realities. The current financial landscape, filled with unexpected twists and turns, is one such moment that demands more than just technical know-how from credit professionals. It encourages us to delve into the philosophies of the past, anchoring our approach in timeless wisdom.
History is replete with leaders who have successfully navigated periods of extreme volatility. Winston Churchill's resilience during World War II, Abraham Lincoln's unwavering leadership during the U.S. Civil War, and Mahatma Gandhi's steady hand leading India to independence, all highlight the power of personal philosophies in facing uncertainty.
However, one leader's philosophy stands out for its relevance to our present situation – Marcus Aurelius, the Roman Emperor. His reign was marked by constant conflict, economic hardships, and a devastating plague. Yet, guided by Stoicism, he remained composed and effective. His wisdom offers us a philosophical lifeline amidst our current financial storms.
Stoicism, at its core, champions acceptance of reality, focusing on what we can control, building internal resilience, fostering continuous learning, and practicing virtue. As credit professionals, this philosophy can guide us through today's complex landscape.
Acceptance of reality, a crucial stoic tenet, means recognising the fluidity of our industries, without falling prey to fear or frustration. We must see the fluctuations in interest rates, potential for high default rates, and geopolitical risks as aspects of our profession, not hurdles. This clarity enhances our decision-making capabilities, allowing us to respond rather than react.
Then there's the emphasis on controlling what we can. We may not hold sway over global interest rates or legal frameworks, but we can shape our strategies, risk assessments, and relationships with clients and stakeholders. By focusing our energies on these elements, we can effectively navigate the unpredictable waves of change.
Aurelius often spoke of internal resilience, not merely as a mechanism to survive adversity but to find tranquillity within it. As credit professionals, this resilience allows us to remain composed and effective, ensuring our decisions are not clouded by emotional turmoil.
Further, Aurelius was a lifelong learner, a quality that has become indispensable in our rapidly evolving economic and technological landscape. Keeping abreast of new trends, regulations, and technologies ensures we are well-prepared to tackle future challenges.
Finally, Aurelius upheld virtue and integrity above all else. As credit professionals, conducting ourselves with transparency, ethicality, and fairness is not only our professional duty but crucial to building trust and sustainable success.
These unprecedented times, while challenging, offer us a unique opportunity. They propel us to look beyond the day-to-day firefighting, to seek guidance from leaders who have stood where we stand, in the face of uncertainty. Like Aurelius, we too can use this tumultuous period to make an indelible impact, shaping our industry for the better, setting a high bar for future credit professionals, and proving that even in comparative chaos, there's a philosophy that can steer us to tranquillity and effectiveness.
As always, we value your input – feel free to share with us your thoughts and the stories that are keeping you engaged.
Stay ahead of the rapidly changing trade credit dynamics with Baker Ing - visit https://lnkd.in/eGtpFDJS for in-depth insights and analyses.
#creditmanagement #globaltrends #riskmanagement #finance #news #economy #UK #inflation #interestrates #mortgages #EVs #insurance #CovidClaims
📣 Baker Ing Bulletin, 15th June 2023
In a world of economic fluctuation and emergent trends, staying abreast of new developments is not just recommended – it's critical. In today's briefing, we delve into the top five stories from the world of trade credit, and attempt to piece together a comprehensive understanding of the evolving landscape. As always, we value your input – so feel free to share with us your thoughts and the stories that are keeping you engaged.
1️⃣ Hong Kong's Crypto Wave: HSBC and Standard Chartered in the Spotlight 🏦💱
The Hong Kong regulator's push for HSBC and Standard Chartered to onboard crypto clients aims to spur the digital assets industry. For companies dealing with these banks, or those operating within the crypto space, the rise in digital asset acceptance may increase credit risk exposure, due to the volatile nature of cryptocurrencies.
2️⃣ China's Economic Shift: Navigating a Changing Landscape 🇨🇳📉
The unexpected slowdown in China's economy could impact the liquidity and solvency of Chinese companies, thereby affecting their creditworthiness. For credit professionals, this signals the need for a reassessment of credit policies concerning Chinese counterparts, particularly in sectors most affected by the slowdown.
3️⃣ Green Governance in the UK: The Climate Risk Disclosure Framework Emerges 🇬🇧🌍
The UK government's requirement for larger businesses to disclose climate-related financial information by 2023 will force transparency in exposure to climate risks. This additional data may affect credit assessments, particularly for companies in high-emission industries or those lacking robust mitigation strategies.
4️⃣ HSBC's French Banking Unit: The Sale that Keeps Us Guessing 🏦⏳
The drawn-out sale of HSBC's French banking unit to Cerberus could create uncertainties in the credit terms for clients dealing with either entity. For example, if Cerberus seeks to restructure the unit or streamline operations, this could affect the creditworthiness of the banking unit or impact its current client relationships.
5️⃣ VW Group on the Tightrope: Cost Cutting Measures in Motion 🚘💰
VW Group's aggressive cost-cutting measures, a response to falling market share in China and rising EV transition costs, could hint at internal financial strain. Creditors in the auto industry should be aware, as this may increase credit risk, particularly if cost cuts lead to layoffs, reductions in R&D, or compromises in product quality.
The Dynamic Equilibrium of Trade Credit Risk Management:
These disparate stories underscore the fact that the landscape of trade credit risk is continually shifting due to the complex interplay of regulatory changes, macroeconomic performance, and corporate strategic decisions. As such, the role of credit professionals is to navigate these waters and maintain balance in the ever-changing landscape.
- Regulatory changes introduce new variables, necessitating constant adaptation.
- Macroeconomic performance provides the backdrop, altering the context in which risk assessments are made.
- And corporate strategies generate ripples that demand a continual reevaluation of credit risk.
We think this emphasises the importance of proactive vigilance, adaptability, and a holistic understanding of the credit landscape. It also underlines the need for advanced tools and technologies that can assist in sophisticated risk modelling and decision-making.
With daily developments reshaping our understanding of credit risk management from a static, one-dimensional discipline into a dynamic, multi-dimensional practice, the challenge for credit professionals is to effectively navigate the complexities of this rapidly changing commercial environment.
We hope you find these updates insightful, and as always, we're here to support you in navigating these changing currents. Stay tuned for more insights and analysis from the world of credit. And, of course, we would love to hear what's on your mind.
For more insightful analysis and commentary for credit professionals, don't hesitate to visit Global Outlook.
📣 Baker Ing Bulletin, 14th June 2023
With economic winds shifting and new trends emerging, it's essential to keep ourselves informed and prepared. Today, we're sharing a brief update on key developments impacting our world of credit. Remember, your thoughts matter to us. What are the stories keeping you on your toes as a credit professional?
Today's insights:
1️⃣ Russian Government Introduces Hefty Tax on Wealthy Businessmen: This has potential implications for associated companies within the metal and fertilizer industries, in particular. As credit professionals, the scenario calls for a reassessment of credit risk and potential modification of credit terms for any such clients in these sectors.
2️⃣ Potential Shipping Levy Looms in France and beyond: The prospect of an emissions levy on shipping could escalate operating costs for the shipping industry and sectors reliant on it. This could lead to increased credit risk for these businesses, stressing the importance of staying updated and adjusting credit assessments accordingly. This is an important development for credit professionals dealing with companies in the shipping industry or those heavily dependent on it.
3️⃣ EU funding China’s Huawei in sensitive AI and 6G research despite curbs: While this may hint at opportunities for Huawei, it also speaks volumes of the EU's strategic intent in the global tech race. Credit policies for companies in the Huawei supply chain, as well as this sector generally, will be very sensitive to such geopolitical developments.
4️⃣ Microsoft-Activision Acquisition Roadblock: The hiccup in Microsoft's quest to acquire Activision Blizzard presents an intriguing subplot in the ongoing saga of big tech. It's a stark reminder of the potential for financial uncertainties that can cascade through companies, suppliers, and partners alike. This highlights the importance for credit professionals to keep a finger on the pulse of mergers and acquisitions, understanding the stakes of the game in terms of credit risk.
5️⃣ Infineon considers moving more production capacity to US: Significant operational changes by a company, like moving production to another country, can disrupt its supply chain and impact its financial health and credit risk. As Germany's largest semiconductor manufacturer, this company's activities can ripple through a plethora of other connected industries, too. Potential disruption to existing supply chains may lead to a reevaluation of credit risk amongst the network of businesses associated with Infineon.
Dynamic Complexity
1️⃣ Macro-Economic Policies: The introduction of wealth tax in Russia demonstrates how macro-economic policies directly influence the financial stability of businesses, thereby affecting their credit risk.
2️⃣ Socio-Environmental Factors: The prospect of an emissions levy on shipping in France signifies how socio-environmental policies can directly affect industry operating costs, and consequently credit risk.
3️⃣ Geopolitical Decisions: The funding of Huawei by the EU despite curbs indicates that geopolitical decisions can trigger industry shifts and influence the creditworthiness of companies involved.
4️⃣ Market Consolidations: The roadblock in Microsoft's acquisition of Activision Blizzard illustrates how market consolidations can introduce financial uncertainties, impacting the credit risk of not only the companies involved, but also their partners and suppliers.
5️⃣ Business Strategy Decisions: Infineon's consideration of moving more production capacity to the US shows how strategic business decisions can disrupt supply chains and create ripples of financial instability affecting credit risk across industries.
We see these events confirm our perspective on credit professionals as navigators within a complex, interconnected system of dynamic variables. Our challenge is to maintain equilibrium within this system and preemptively manage risks.
This is achieved not only through reactive measures in response to events as they occur, but, more importantly, through proactive measures that predict, prepare for, and ideally prevent credit risk based on a holistic understanding of the ever-evolving macro and micro landscape. This includes maintaining comprehensive, timely knowledge and insights, fostering adaptability, and leveraging advanced tools and technologies to aid in sophisticated risk modelling and decision-making.
Daily developments are underscoring the evolution of credit risk management from a traditionally static, one-dimensional discipline into a dynamic, multi-dimensional practice. It accounts for the complexity and interconnectedness of various factors – economic, social, geopolitical, industrial, and strategic – in shaping the landscape of credit risk.
Our ultimate aim is to help credit professionals navigate these complexities and effectively manage risk in a rapidly changing world.
As always, we're here to support you in navigating these changing currents.
Stay tuned for further updates and don't forget to let us know what's on your mind.
For more insight and analysis for credit professionals, visit Global Outlook.
📣 Baker Ing Bulletin, 13th June 2023
With economic winds shifting and new trends emerging, it's essential to keep ourselves informed and prepared. Today, we're sharing a brief update on key developments impacting our world of credit.
Remember, your thoughts matter to us. What are the stories keeping you on your toes as a credit professional?
Today's insights:
1️⃣ US Junk Loan Defaults Spike: With junk loan defaults reaching new highs and interest rates on the rise, the credit market is under pressure. It's a wake-up call to reassess the creditworthiness of clients, particularly those heavily dependent on borrowing.
2️⃣ US Inflation Cools Down: With inflation at its lowest since early 2021, the economic relief could translate into healthier business prospects and potentially more reliable payments. Could this also mean improved payment performance across our client portfolios?
3️⃣ Europe's Nearshoring Boom: Europe's demand for factory space has surged by 29%, due to the increasing trend towards 'nearshoring'. With supply chains adjusting rapidly, new risks and opportunities in extending trade credit might arise. Time for a reassessment of our credit terms!
4️⃣ Bunzl's Supply Chain Shift: The move to source more outside of China by Bunzl is reflective of a larger shift towards supply chain diversification. If your clients are closely linked to Chinese supply chains, this could impact their cash flows and ability to meet payment obligations.
5️⃣ Nasdaq's Major Acquisition: Nasdaq's acquisition of fintech firm Adenza for a whopping $10.5bn could lead to shifts in credit conditions, payment practices, and financial stability in fintech and exchange-oriented businesses. The ripples of such a massive deal could be felt across related industries.
6️⃣ Foreign Investment Decline in Chinese Tech: The dip in foreign investment in Chinese tech companies could potentially tighten their liquidity, translating into increased credit risk. If your transactions involve these firms, be prepared for potential credit challenges.
Navigating the Shifting Credit Landscape with Adaptive Credit Resilience
In this evolving landscape, we propose "Adaptive Credit Resilience" as a way forward. It is based on the principle that our credit strategy needs to be both adaptable and resilient, capable of responding effectively to complex and volatile economic environments.
We believe credit management should be dynamic and forward-looking, tailored to the unique circumstances of each debtor. The core principles of Adaptive Credit Resilience include:
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Systemic Understanding: Understand the broader context of each client, including macroeconomic factors and industry trends that can affect their creditworthiness.
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Predictive Analytics: Use data and advanced analytics to predict potential credit risks before they materialize.
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Adaptive Decision-making: Adapt credit decisions quickly in response to new information or changing conditions.
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Risk Diversification: Spread credit across diverse sectors and geographies to reduce exposure to shocks in any one area.
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Resilience Building: Prioritise clients who can withstand economic fluctuations, demonstrated by strong cash flows, diversified supply chains, and sound business models.
In these tumultuous times, Adaptive Credit Resilience is the cornerstone of a strategy designed to stay ahead of risks and seize opportunities. It's about adapting to change, managing risk, and building resilience into your credit portfolio.
As always, we're here to support you in navigating these changing currents. Stay tuned for further updates and don't forget to let us know what's on your mind.
For more insight and analysis for credit professionals, visit Global Outlook.