Today’s global challenges illustrate how effective compliance is more critical than ever. Changing geopolitical conditions, acute contractions across some sectors and increased demands in other industries have contributed to a very fragile and fluid business climate. Agility and integrity define sustainable success. Recent events have forced businesses to contend with an immediate impact on the way they conduct due diligence.
Companies now have to conduct their customer, agent, vendor and third-party due diligence solely utilizing online resources – right at the time when the risks of incomplete due diligence are significantly heightened. Do you have a strategy in place to successfully navigate this inflection point without negatively impacting your risk management and compliance efforts?
Realize benefits beyond boots on the ground evaluations
As you adjust your due diligence workflows, the loss of access to onsite visits and in-person evaluations can be difficult to work around. Although immediate change is disruptive in the short term, the concept of “contactless due diligence” offers long-term benefits that can be leveraged across core operations.
- Stronger compliance: Contactless due diligence supports an automated, well-structured workflow which increases research consistency and reduces errors that could expose your business to sanctions, bribery and corruption risks
- Lower costs: Online due diligence eliminates travel expenses and the need to invest in local research resources
- Increased efficiencies: Contactless due diligence helps shorten due diligence turnaround times and reduces decisioning delays
- Improved transparency: Online due diligence can be linked back to current sources that can be directly confirmed
- Reduced risk: Contactless due diligence eliminates the risk of long chains of outsourcing due diligence to local researchers, which introduces the need and expense for additional vetting
- Improved oversight: Online due diligence offers both a detailed audit capability and an administrative functionality that ensures control over the information your team is accessing
These gains in efficiencies and cost savings further streamline supply chain workflows without negatively impacting the quality of due diligence your business can perform on customers, agents, vendors and third-parties.
Achieve better online due diligence outcomes with optimal tools and intelligence
Disruptive geopolitical conditions and shifting markets have multiplied the opportunities for bribery and corruption – making it critical to select reliable resources and tools for online due diligence. Not all data sources offer enough global coverage and source diversity to provide a complete end-to-end view of risk. The quality of the intelligence that drives supply chain decisions and the efficiency with which you can complete compliance requirements can’t be compromised – especially now.
Key considerations to help optimize the effectiveness of a contactless due diligence approach include:
- Depth and breadth of coverage: Does the data deliver deep and comprehensive global coverage of both individuals and business entities? Does it illustrate the relationships and connections that could link back to sanctions or Politically Exposed Persons (PEP) risk?
- Access to critical information: Can you easily identify compliance risks with up-to-date coverage of State Owned Enterprises (SOE), PEP, Adverse Media, Sanctions Lists and Associated Entities, Enforcements and Registrations Data?
- Ease of use: Is the data categorized and structured in a way that is easy to consume and share across the business? How clearly is pertinent information illustrated? Can you quickly discern relevant details and actionable insights that drive informed, efficient decisions and eliminate delays or research redundancies?
- Source Strength: Who is compiling the intelligence that you are utilizing? Do they understand the nuances of regulatory compliance issues and offer deep data science expertise? Are researches located in the major continents and do they offer fluency in the majority of languages spoken across leading worldwide markets?
- Risk-relevant, continuously updated intelligence: Data gaps and stagnant risk intelligence open opportunities for risk. To ensure your online due diligence program accurately reflects today’s fluid geopolitical climate, your data needs to deliver 24/7 awareness of relevant events that could impact your business. How often is the data being updated and refreshed?
- Customizable tools: The factors that fuel your business success are unique. They must support a more nuanced, risk-based due diligence process that reflects your risk appetite. They should also work across specific business and compliance use cases. Can you easily store results to support internal audits, workflows and further investigations as needed?
By asking these questions upfront, your business can select quality tools and risk intelligence that support a smoother transition to contactless due diligence and minimize disruption and delays. Starting from a solid foundation helps accelerate acclimation to online due diligence which in turn keeps the focus on supply chain integrity and core business objectives.
Changes in global economies have forced businesses to reassess and realign their approach to supply chain due diligence. Embracing the benefits of contactless due diligence helps control exposure to sanctions, bribery and corruption risks and ensures a supply chain is well-positioned to contribute value in today’s challenging business climate.
As you reevaluate your supply chain workflow, LexisNexis® Risk Solutions offers industry-tested due diligence tools and globally-trusted risk intelligence to strengthen supply chain integrity. Connect with us to learn more. Call 1-800-953-2877 or visit risk.lexisnexis.com/ABC.