Note: this article and video predate our Modern Research Experience. We're working on bringing you the most up-to-date training that aligns with our enhanced platform and products.

For a video tutorial, watch IBISWorld for Advanced Credit Applications.

On your homepage, choose between lending, underwriting and credit risk functions for a tailored view of industry reports. Let’s get started with the underwriting view, using the Paint Stores in the US industry report as an example.

Each industry is given an overall risk rating on a scale of zero to nine, with nine being the highest potential risk. The Paint Stores industry, for example, has an overall risk rating of 6.33, making it a high-risk industry.

To get an in-depth understanding of what’s happening in a particular industry, click on learn more underneath the risk rating or the lightning bolt icon on the left to access the full Risk Rating Report.

The Risk Rating Reports are updated monthly, so they always have relevant information. The Risk Overview section shows the three components that make up the overall risk score, helping you see the highest and lowest risk areas in an industry. Each component—structure, growth and sensitivity risk—is rated from zero to nine, with weightings assigned to the categories to identify and adjust for the most influential factors. Click on a component in the left-hand navigation bar to learn more about the factors that contribute to each risk score.

The Structural Risk section lays out seven areas that can put pressure on an industry, giving you the information you need to assess the risk factors.

For example, if the ‘competition’ structure component is high, it creates extra pressure for the industry. Take a look at any risk factor with a score of seven or above for a quick overview of areas you need to learn more about to identify whether a business is doing enough to mitigate those risks. Scroll down the page to see more detailed information on each risk factor.

To see the future direction of an industry’s predicted growth, click on the Growth Risk section. This section answers the question ‘why is this industry predicted to either grow or decline?’ It’s important to be forward-looking when you’re assessing an industry, so forecast growth is weighted higher than past growth.

The final section takes a look at Sensitivity Risk, which is one of the most important risk factors. The sensitivity components listed in this section are the factors that affect an industry that are outside of its control. The highest scores show the largest pressure points for an industry.

Your Client Relationship Manager can help you access the risk ratings or set up a trial period if you can’t see them.

Let’s return to the Industry at a Glance for Banking page and take a look at the Financial Ratios and Multiples section. This overview shows you the common financial ratios presented on a national scale.

To get more in-depth information, click 'Learn More’ and scroll down to Financial Ratios. Here, you can compare businesses based on their asset size within ten different categories. The list of ratios is created using IRS data, the largest available sample size, so that you have a comprehensive list of ratios and the ability to compare similar-sized businesses while doing your credit analysis. You can also review how the external factors affect other industries by clicking on Key External Drivers.

Let’s run through Segment Benchmarking, using the Soda Production industry in the US report as an example.

This product helps you understand different business sizes within an industry and compare the performance of small, medium and large businesses. Use this chapter to benchmark a business’s growth against the average for its segment and evaluate whether or not you want to grow your engagement with them.

Click on Segment Benchmarking in the left-hand navigation bar to open the chapter. Then, click on an employee segment, such as 20-99 employees, to jump to performance insights for businesses of that size.

Key Statistic Insights gives you more information about growth within that segment, while the SWOT analysis section identifies the strengths, weaknesses, opportunities and threats that impact the segment compared to other size businesses across the industry.

Scroll down to the Performance Benchmarking section to analyze different entry and exit rates amongst businesses and see how these compare to different-sized businesses in the same industry.

In the Productivity Benchmarking section, you’ll find the expansion and contraction rates of businesses this size in this industry. This shows you the rate of growth for businesses of different sizes, which is key for identifying fast-growing businesses in industries that are dominated by one player.

This is an additional tool available for banking subscribers under expert tools. You’ll also find it by clicking learn more on the Credit Risk at a Glance page of My IBISWorld for Banking.

The Early Warning System identifies the different industries that have increasing or decreasing risk levels and is updated on a monthly basis.

The tool forecasts future risk ratings for each industry, highlighting industries that are set to face challenges. This tool flags vulnerable industries and provides a warning for potentially risky loans.

The Geographic Breakdown chapter provides a granular analysis of each industry, presenting industry data for each state across the United States. This tool presents the data on a heat map, which is easy to navigate and shows you industry data on a regional level. Click on a state to identify regional trends, market concentration and industry highlights.

For additional questions regarding advanced credit applications, please contact your Client Relationship Manager. If you’re not an IBISWorld member, please contact us to learn more about our membership options.