Reflection for risk managers

As of mid-2022, global inflation hit a 40-year high, affecting consumer purchasing power. OECD projects a gradual decrease in inflation through 2023, easing energy and food prices. FICO® Advisors Risk Benchmark reflects this trend, showing increased delinquencies in the USA and Canada. Recession fears persist due to slow growth and high interest rates, impacting global economies. Risk managers must adapt collections practices, enhance customer communications, and optimize treatments to navigate the cost of living crisis effectively. With a focus on managing risk and supporting customers, financial institutions can ensure success in a changing landscape.

• Global inflation peaked in mid-2022, impacting consumer purchasing power worldwide.
• OECD projects a gradual decline in inflation through 2023, offering hope for consumers and policymakers.
• FICO® Advisors Risk Benchmark reveals increasing delinquencies in the USA and Canada, necessitating adaptive collections practices.
• With slow growth and high interest rates, global economies face recession fears, emphasizing the need for proactive risk management strategies.
• Financial institutions must prioritize customer support and risk management to navigate the cost of living crisis successfully."