This document provides a structured guideline for A2P Credit Risk Management. The volatility of the global economy significantly affects an organization’s financial health, making a sound credit risk framework essential at every stage of a product’s lifecycle. To address the growing complexity of managing credit risk, GSC developed a workstream to gather input on the challenges faced by its members.
The outcome was a set of best practice guidelines to mitigate these risks. In the expanding A2P SMS market, effective credit risk management is crucial to ensure financial stability, given the complexity of pricing models, billing cycles, and multiple intermediaries. Unlike voice communication, A2P SMS requires a nuanced approach due to its high transaction volume and the need for real-time risk assessment. Proper management helps companies mitigate financial exposure and thrive in this evolving market.