GMI Ratings’ Accounting and Governance Risk (AGR®) ratings reflect accounting and governance practices statistically associated with an elevated risk of securities class action litigation, financial restatements, and SEC enforcement actions. Developed by Audit Integrity, one of GMI Ratings predecessor firms, AGR scores incorporate forensic assessments of financial statements and several key aspects of corporate governance.
Key characteristics of our AGR Ratings include:
- Broadest Coverage – We publish our proprietary AGR Ratings on approximately 18,000 companies in 27 countries, including over 7,400 North American corporations, 4,300 Western European corporations, and 6,600 Asia‐Pacific corporations.
- 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.
- Customized Applications – Based on its data and risk-modeling expertise, GMI Ratings develops customized applications to assess narrowly defined risk such as the risk of bankruptcy and class-action securities litigation.
