The new way to see risk

Predictive longevity refers to the capability to precisely estimate a company's lifespan by considering various factors such as its business resilience and cyber hygiene. Essentially, predictive longevity tells us how long a company is expected to stay operational. This foresight is invaluable as it helps others make informed decisions when interacting with the company in question.

Understanding the longevity of your counterparties is crucial for maintaining stable and resilient operations. Predictive longevity provides insights into how long your counterparties are likely to remain in business, which is essential for mitigating risks and ensuring continuity of operations.

Predictive longevity is particularly important in today’s environment, which is characterized by increasingly short corporate lifespans and upticks in bankruptcies. The below statistics provide further insight into the volatile and unpredictable nature of the current business landscape:

- The average lifespan of S&P 500 companies in 1958 was 61 years. Today, it’s 21 years.
- 52% of companies on the 2003 Fortune list no longer exist today.
- Business bankruptcies rose nearly 30% in the twelve-month period ending September 2023.
 
Companies don’t last forever, and when one closes its doors unexpectedly the impacts can be devastating for suppliers, customers, partners and investors. Predictive longevity empowers businesses to make informed decisions, adapt to changing circumstances, and build resilient partnerships that support long-term success.

Understanding the predictive longevity of a company offers significant advantages. For suppliers, this insight is crucial in assessing a company's stability before committing to long-term contracts, thereby reducing the risk of disruptions to the supply chain. Likewise, customers can have confidence in engaging with companies with longer lifespans, knowing they are likely to receive consistent and reliable products or services over an extended period.

For investors, lenders or JV partners, predictive longevity insights are crucial when considering injecting capital into a company or project, as lifespan information helps mitigate risks and ensures a favorable return on investment.

Cyber hygiene and business resilience are pivotal factors that directly impact a business' longevity. By analyzing over 3200 AI-selected risk indicators, our model assesses the robustness of a company's cyber hygiene practices and its ability to withstand and recover from disruptions. Businesses with strong cyber hygiene practices, such as regular software updates, robust firewalls, and employee training on cybersecurity best practices, are better equipped to fend off cyber threats and maintain operational continuity. Additionally, those with comprehensive business resilience strategies, including contingency plans, redundant systems, and disaster recovery protocols, are more likely to bounce back swiftly from unforeseen events, such as cyberattacks or natural disasters. By prioritizing these aspects, our model predicts the estimated lifespan of a business and when necessary, supplies a list of alternative companies that have a higher likelihood of enduring challenges and thriving in the long term.