Risk and Compliance

Based on a detailed review of 20 companies within the Risk and compliance sector, we have analysed the payment behaviour to determine the financial health and liquidity flow of the industry. The data reveals a median payment time of 27 days, which is notably lower than the average (mean) of 32.3 days. This discrepancy suggests that whilst the centre of the distribution leans towards prompt settlement, the average is being pulled upward by a minority of slower payers. Specifically, the standard deviation of 15.5 days indicates a moderate level of volatility amongst the sample group. It is encouraging to observe that 60% of the companies analysed fall into the 'Fast' category (0-30 days), demonstrating a general tendency to favour efficient supply chain management.

When we organise the data by quartiles to understand the spread of performance, a more nuanced picture emerges. The interquartile range stands at 26 days, representing the gap between the top performers (25th percentile at 21 days) and the slower cohort (75th percentile at 47 days). This suggests that whilst a company might expect payment within a month, there is a significant risk of funds being tied up for closer to seven weeks depending on the specific trading partner. Furthermore, the fastest payer settled accounts in just 13 days, whereas the slowest took 65 days. Stakeholders must realise that although no companies fell into the critical 90+ day category, the disparity between the fastest and slowest actors is substantial, requiring robust credit control procedures.

A deeper examination of the performance breakdown highlights that despite the strong median figures, late payments remain a persistent issue, accounting for 27.4% of the total activity. Although 66.6% of payments are cleared within 30 days, nearly 10% of invoices drag on beyond the 60-day mark. This tail end of the distribution represents a tangible risk to cash flow for suppliers within the Risk and compliance sector. However, the absence of any companies in the 'Critical' (>90 days) bracket is a positive indicator, suggesting that even the slower entities eventually honour their obligations before they become severe bad debts.

Finally, it is essential to contextualise these findings geographically, as the sample is heavily centred on London, which accounts for 65% (13 companies) of the dataset. This heavy weighting towards the capital may reflect specific regional working capital practices that differ from the North West or East Midlands. In summary, the Risk and compliance sector demonstrates generally healthy payment habits with a strong inclination towards sub-30-day terms, yet suppliers should remain vigilant regarding the notable minority of transactions that extend into the 46-60 day range.