Edcon signs credit risk management contract with PIC Solutions

Edcon, Africa`s largest fashion retail group, has signed an enhanced multimillion-rand RiskMentor contract with PIC Solutions. This contract, an expansion of the previous RiskMentor relationship, provides additional credit and risk management consulting support on a retainer basis.

In the new relationship, selected personnel from the Edcon risk management team will join PIC Solutions, which will then be responsible for supporting the on-going management of the credit and risk metrics of the Edcon portfolios.

Edcon will retain all control over lending policies and will utilise PIC resources for the development and implementation of portfolio management strategies and new initiatives covering the entire customer lifecycle. These include behaviour scorecard redevelopments, enhanced risk assessment technologies and revised decision strategies.

Ian Wood, Credit Executive at Edcon, states "I was pleased with the conclusion of the outsource arrangement that has effectively lowered the risk of loosing key risk resources due to the high demand and short supply of these resources in the country. This move ensures that Edcon will have a guaranteed team of risk specialists as supplied by PIC Solutions thus enabling Edcon to speed up the delivery of scorecard redevelopments and revised decision strategies. The relationship between the companies has been a mutually beneficial arrangement that has gone from strength to strength over the past few years. Edcon values the advice and recommendation that this highly professional organisation has provided over the years and looks forward to a long and fruitful partnership going forward."

Dave Lewis, Director of Consulting Solutions, adds: "We have maintained an excellent relationship with Edcon for a number of years. Our risk management specialists have worked closely with the Edcon team to design, test and implement leading-edge risk management strategies and techniques that have been applied to all of the retail credit chains. Last year we were very pleased to receive an Edcon Financial Services Citation, which recognised the significant benefits that we have added to the business.

"This enhanced contract is a natural extension of the RiskMentor relationship and it enables us to provide dedicated expertise in the most cost-effective and flexible manner. This agreement will offer Edcon protection against the loss of key personnel and ensure that they remain at the forefront of African fashion retailing and credit risk management."