AGR Analytics

GMI Ratings’ proprietary Accounting and Governance Risk (AGR®) ratings of more than 20,000 companies worldwide have been shown to be predictive of adverse events such as securities class action litigation, financial restatements, and SEC enforcement actions. In short, aggressive accounting behavior and risky corporate governance practices increase the likelihood of negative events.

Key characteristics of our AGR ratings include:

  • Broadest Coverage – We publish our proprietary AGR ratings on more than 20,000 companies, including over 8,200 North American companies, 4,300 Western European companies, 3,400 Asia‐Pacific companies, and 3,300 Japanese companies.
  • Coverage of Key Risk Factors — AGR scores are based on discrete risk factors organized into categories such as revenue recognition, expense recognition, asset-liability valuation, governance risks and high-risk events.
  • Simple and Consistent Quantification – The AGR rating is expressed in two ways: as a percentile score ranging from 1 to 100, and in corresponding categories ranging from Conservative to Very Aggressive.
  • Specialized Applications – GMI Ratings’ Financial Distress model and Litigation Risk model are primarily driven by AGR, combined with other factors.

In addition to the AGR Fraud model, AGR analytics form the basis of our Litigation Risk Model, Bankruptcy Risk Model, and Forensic Alpha Model.

 AGR Video

AGR 3.0 White Paper

Lit model