New in r3: Trend-based risk metrics
Platform update: Our second August 2026 release delivers major new risk-tracking functionality in r3, enabling lenders to monitor and respond to trend-based risk metrics. This massively increases what’s possible with r3, while also addressing key issues associated with using point-in-time metrics only.
What’s new?
From today, lending teams can use r3 to track trend-based risk metrics, in addition to point-in-time metrics. We’ve expanded the calculations for all risk metrics in r3 to include three new datapoints:
- 30-day average
- 90-day average
- Metric trend (the difference between the 30-day and 90-day averages)
This change applies to all risk metrics in r3 – including dilution, cash-turn and DSO.
Like point-in-time metrics, r3 users can use trend-based risk metrics when building their risk covenants. This functionality is unique to r3. While other lending risk systems allow teams to track risk trends, r3 goes one step further and enables users to factor trend-based metrics in the risk score calculation for each client.
What value do trend-based risk metrics offer lenders?
The introduction of trend-based risk metrics to r3 gives IF risk managers a wider range of tools to track risk. This enables teams to be more sophisticated in their monitoring approach, by combining trend-based and point-in-time metrics within risk covenants.
Monitoring both types of metrics simultaneously also helps risk managers overcome the two key issues associated with point-in-time metrics: volatility and false-positives. This in turn reduces ‘noise’ for risk teams.
For example: a client may open and close a massive credit note within 24 hours, causing causing their dilution to shift from low to critical, then back to low again. A more useful metric is dilution over 90 days. An increasing trend in this metric represents a greater risk to the lender.
Trend-based risk metrics are especially useful for monitoring clients with atypical financial characteristics. For example: those with consistently high DSO or concentration. Here, it’s useful to know how these metrics track over time.
What else do you need to know?
The introduction of trend-based risk metrics puts r3 firmly out in front of other leading IF risk-monitoring systems. Trend-based risk metrics are available to all lenders using r3, following our r3 v26_06/07.20 release earlier this week.
If you’re an r3 lender with questions about how trend-based risk metrics work, speak to your Dancerace Customer Success Manager today.
If you’re not yet an r3 user but would like to see r3 in action, get in touch.
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About r3 RiskOps
r3 RiskOps gives IF lenders of all sizes the tools to model, monitor and act on client risk from a single, intuitive system. This puts risk at the centre of planning and decision-making across your lending business, including everyday operations and client management. To find out more, click here.