ZETA^® Risk Model

ZETA® is an objective methodology for quantifying risk based on various inputs from financial statements.

Zeta Services Inc. developed the ZETA® model to permit investors and credit professionals to efficiently and objectively review the credit risk of their industrial company holdings. Data from companies’ financial statements are analyzed to provide trends and warning signals about financial health. The ZETA® model is a proven methodology used widely over the past twenty five years by sophisticated financial institutions.

ZETA® Risk Control System

ZETA® Risk Control System (ZRCS) accesses the financial statement data, prepares credit ratings, provides a variety of reports and stores the data for each company.  This enables investors and credit professionals to take the necessary steps to reduce losses and maximize returns.

The ZETA® Risk Control System can be used in conjunction with an existing review program to rate the relative exposure of investments. The program distinguishes viable companies from those which are less likely to meet their financial obligations as they become due.  For companies that eventually fail, the program generally provides early warning signals 3 to 5 years prior to bankruptcy.

How is ZRCS different from traditional Credit Analysis?

• Its emphasis is on objectivity.
• It uses a precise combination of quantifiable credit concepts.
• It focuses on the determinants of insolvency risk and how closely a company’s characteristics match those companies which have already failed.
• The resultant score is transparent and replicable by any person using ZRCS.

Risk Control & Valuations Specialists

Financial Markets

Supplier Risk Management