WVB – Global Financial Data Provider

BUSINESSRISK SCORE

A transparent, research-based approach to measuring the true risk of a business.

WVB’s Business Risk Score evaluates the underlying quality of a company’s operations—independent of its financing decisions—so you can make smarter, more confident decisions across industries and markets.

  • GLOBAL COVERAGE219 countries & territories
  • HISTORICAL DEPTH40+ years of financial data
  • PUBLIC & PRIVATE COMPANIESMillions of companies worldwide

THE WVB BUSINESS RISK METHODOLOGY

  1. 01

    FINANCIAL STATEMENTS

    Collect and standardize financial information from companies worldwide.

    Income Statement
    Balance Sheet
    Cash Flow Statement

  2. 02

    18 QUANTITATIVE RISK MEASURES

    Evaluate 18 financial measures across 4 key risk areas to assess business performance and risk drivers.

    18 Measures

  3. 03

    4 RISK PILLARS

    Combine the 18 measures into four analytical pillars that capture the key dimensions of business risk.

    • Operating Risk
    • Strategic Risk
    • Asset Management
    • Size & Diversification
  4. 04

    BUSINESS RISK INDEX (BRI)

    Calculate the unleveraged Business Risk Index (BRI) to measure the inherent risk of the business independent of capital structure.

    BRI = Unleveraged
    Business Risk (Beta)

  5. 05

    BUSINESS RISK PREMIUM

    Determine the Business Risk Premium by applying the BRI to the Market Risk Premium (MRP).

    Business Risk Premium
    = BRI × MRP

  6. 06

    COST OF CAPITAL

    Calculate the cost of capital for business risk using the risk-free rate and the business risk premium.

    Cost of Capital
    = Risk-Free Rate
    + (BRI × MRP)

  7. 07 accelerator icon

    WVB BUSINESS RISK SCORE

    The final score reflects the overall business risk profile and supports better decision making across industries and markets.

    ★ WVB Business Risk Score

Consistent. Transparent. Comparable.

THE FOUR PILLARS OF BUSINESS RISK

1. OPERATING RISK

Consistency of operational performance

  • Variation in Pre-Tax Return
  • Variation in After-Tax Return
  • Variation in Total Gross Return
  • Variation in Operating Cash Flow Return
  • Variation in Capital Growth Rate

2. STRATEGIC RISK

Ability to create future value

  • Pre-Tax Return
  • After-Tax Return
  • Total Gross Return
  • Net Sales Growth
  • Internal Capital Growth Rate

3. ASSET MANAGEMENT

Efficiency in managing assets and resources

  • Accounts Receivable Days
  • Inventory Days
  • Net Working Capital Variation Index
  • Weighted Average Asset Life
  • Plant Newness
  • Useful Plant Life

4. SIZE & DIVERSIFICATION

Scale and geographic diversification

  • Company Size (Total Capital)
  • International Diversification (% NOPBT from Foreign Sources)

WHO USES THE BUSINESS RISK SCORE?

  • Banks & Financial Institutions
  • Investment Managers
  • Private Equity & Venture Capital
  • Insurance Companies
  • Corporates & Procurement Teams
  • Government & Regulatory Authorities

READY TO SEE IT IN ACTION?

Discover how the WVB Business Risk Score can help your team improve due diligence and make more informed decisions.

Contact Us Request A Demo

Frequently Asked Questions

Find quick answers to common questions about the WVB Business Risk Score and our methodology.

The WVB Business Risk Score is an independent assessment of a company’s underlying business risk based on 18 quantitative financial measures across four key pillars. It reflects the inherent strength and resilience of a business, independent of its capital structure.

No. The Business Risk Score is calculated using unleveraged measures so it reflects operating risk independent of how a company is financed. Financing decisions are assessed separately from business risk.

It is derived from 18 quantitative measures grouped into four risk pillars, combined into a Business Risk Index (BRI), then translated into a Business Risk Premium and Cost of Capital before arriving at the final score.

Yes. The methodology is applied consistently across 219 countries and territories, allowing for meaningful cross-border and cross-industry comparisons.

Business Risk measures the inherent risk of a company’s operations, while Credit Risk reflects the likelihood of default given its financing structure. The two are complementary but distinct measures.

WVB covers millions of public and private companies worldwide, spanning industries, market sizes, and geographies.

The score draws on standardized financial statement data—including the income statement, balance sheet, and cash flow statement—collected and normalized across global markets.

The score is available through the WVB platform, API, or as part of flexible data feeds. Contact our team to discuss the best delivery option for your organization.

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