As the economy recovers, managers of small-business portfolios must always remember that their loan portfolios are constantly changing. That’s why it’s critical for risk managers to look at their debt holders differently. They must examine more closely the behaviors of these owners, especially to predict the potential for fraudulent activity and what can be done to minimize losses. This is vital because fraud committed by small-business owners, while relatively rare, generates at least three times the impact of a conventional fraud loss. An Experian® study of 10,500 “bad” small-business loans underscores this. By simply amplifying their view of their portfolio risk, portfolio managers can gain a more complete picture of their small-business owners’ finances to reap bottom-line rewards. Experian’s extensive data bank of commercial and personal data is an increasingly essential weapon to use to detect brewing financial problems and even fraud. Today’s small business lending portfolios reflect the improving economy, and differ from those during the recession. This “change is constant” reality explains why portfolio managers must look much more closely at the loans and the behaviors of their small-business owners to help identify fraudulent activity and other problems and, ultimately, to drive profitability and reduce risk.