Evaluation

An accredited certification body receives the demand from beneficiaries requesting for the evaluation to the MSI 20000 certification. The certifiers collect the data on behalf of the evaluators, who carry out the financial analysis on the basis of the accounting information, taken from the financial statements press releases.
The assessment is carried out using labeled FinTech tools, ensuring reliability and speed of execution. These tools follow a precise guideline, that of the specifications of the MSI 20000 repository. The specifications of the repository aim to measure the financial quality of any economic entity. Financial quality is mathematically measured by the fine and precise assessment of the financial strength and financial performance of beneficiaries undergoing the assessment exercise. The specifications of the MSI 20000 Standard carefully cover, by sector of activity and for each of the analysis themes, a battery of financial instruments and econometric models.

Foundation

The assessment against MSI 20000 is based on the FinTech tools, taking as an input the financial statements of the companies. This assessment consists in measuring the financial quality of a company, by transposing its financial situation, on the benchmarks of its sector of activity. It involves, through an intrinsic financial analysis, projecting and positioning the financial situation of the company, according to its sectoral mapping.

The assessment mission aims to rule on a state of compliance, relative to a given threshold, with a view to certification.

A certification against a repository is the validation at a stopped moment of an evolving system. The MSI 20000 financial certification validates and certifies a company’s compliance with a set of financial quality criteria.

The MSI 20000 standard provides information on the quality of the financial situation of a company and hence of management and financial management.

Process

The specifications of the MSI 20000 standard list the requirements in terms of the financial quality of a structure, according to its sector of activity. The list of requirements as a guideline, serves as a support for certification, which revolves around two axes: financial solidity on the one hand and financial performance on the other. These two areas of analysis are a sign of: profitability, solvency and sustainability over time.

Certification to the MSI 20000 standard is based on the assessment of the conformity of the financial management system, through the measurement of the financial quality of the company. To this end, the MSI 20000 specifications guarantees the establishment of 3 processes summarized below :

Data collect

The certification body collects from the beneficiary all the data that will be used for the evaluation work. The main analytical support are the financial statements for the past three up to five years, approved by the statutory auditors. Data collection takes place at the premises of the beneficiary ; the documentary review and data processing take place at the certifier office.

Any data transmitted or information communicated within the framework of the missions is subject to confidentiality. The relationship between the parties is enterily governed by the seal of confidentiality.

Technical diagnosis

On the basis of the approved financial statements and the MSI 20000 sectorial protocol, the technical diagnosis involves evaluating the financial quality of a company, by measuring the areas of solidity and financial performance.

The assessments are done in the form of a complete and in-depth financial diagnosis, exploring theme by theme, the components and underlying documents, directly or indirectly related to the financial quality of a company. Each theme is evaluated individually through a selection of specific instruments, depending on the sector of activity.

Interpretation

This involves comparing the results of the financial diagnosis with the sector benchmarks recommended by the MSI 20000 standard. This comparison allows, via a scoring system, measured by coefficients and algorithms for reading the differences, organized by FinTech tools , to measure and precisely locate the financial quality of a company and thus decide on its ability to be certified.

Methodology

In order to scientifically measure the financial quality of a company, the methodology is built on the mathematical assessment of the following 2 areas of evaluation:

FINANCIAL SOLIDITY
Asset management
Liability management
Liquidity management
Risk management
Human capital management
Tableau illustratif, variable selon le secteur d’activité
PERFORMANCE
Commercial profitability
Economic profitability
Financial profitability
Operational profitability
Operating profitability

The specifications of the MSI 20000 Standard carefully cover, by sector of activity and for each of the themes, a series of specific financial instruments and econometric models.

Fintech

Fintech is at the heart of the evaluation process:

Role of Fintech in the assessment and certification process: reliability and speed of execution.

The Blockchain at the center of certification, makes it possible to follow a verified and updated history of certified entities around the world.