Daniel Parry did not seek to have an economic or political argument about whether the U.S. is officially in a recession. Rather, the co-founder and chief executive officer of TruDecision maintained that risk is in play no matter how well the economy may or may not be doing.

Parry pointed out more than a half dozen data points that company decisionmakers could watch to make informed choices. Then, Parry shared a trio of recommendations he’s offered to other clients of his fintech company that’s focused on bringing competitive advantages to finance companies through analytic technology.

He introduced his commentary shared online via LinkedIn this way.

“You cannot turn on the news these days without hearing hostile arguments about whether we are or are not already in a recession,” Parry wrote. “With news of a second consecutive quarter of GDP decline, those who dislike the current administration declare that we are. Those on the other side of the aisle say that two consecutive quarters of decline is not the official definition of a recession. The latter point to various economics professors and the National Bureau of Economic Research (NBER), which sets the official dates of economic cycles.”

Parry then asserted, “My answer to this debate is ‘who cares?’”

What Parry thinks what finance companies should care about include metrics such as unemployment, consumer sentiment, the ISM Manufacturing and Services Index, the inverted yield curve, inflation and interest rates.

After examining those trends, Parry recommended three strategies to finance companies, beginning with ensuring it has excess debt capacity.

“It is wise to retain debt capacity so as to continue funding loans, particularly if the securitization market contracts or becomes impractically expensive,” Parry wrote.

Next, the TruDecision leader mentioned that finance companies can consider modifying requirements for the maximum amount financed and minimum down payment.

“Modest changes can go a long way to leveling off performance volatility across the credit cycle,” he wrote.

Finally, Parry urged finance companies to watch wholesale vehicle values.

“As vehicle values decline, which is likely over the next 18 to 24 months, it will be increasingly important for credit managers to slowly offset those declines with tighter policy in the lowest tiers,” he wrote.

If you have more questions, you can reach Parry at solutions@trudecision.com.