A large trading company in the engineering equipment sector had a customer base exceeding 600 buyers across India.

Despite diversification, management suspected hidden concentration risk in receivables.

Finvigil conducted a Portfolio Exposure Audit.

Key Findings

The audit revealed a significant structural risk.

Additionally:

• Two customers showed deteriorating financial health
• One buyer accounted for ₹28 crore exposure

Finvigil Risk Mapping Approach

Finvigil conducted a multi-dimensional exposure analysis.

Key dimensions included:

• Customer concentration risk
• Industry exposure
• Geographic exposure
• Payment behaviour patterns

A risk heatmap was developed to identify critical exposure zones.

Recommendations

Finvigil proposed:

1. Exposure caps for individual customers
2. Insurance coverage for high-risk buyers
3. Diversification of customer portfolio
4. Regular quarterly exposure audits

Strategic Outcome

Within 12 months:

• Largest customer exposure reduced from 22% to 11%
• Receivable risk concentration significantly reduced
• Credit insurance implemented for high-risk buyers

Strategic Insight

Portfolio exposure audits are critical in identifying hidden systemic risks that are invisible in traditional financial reporting.