To fend off financial and reputational risk, you must stay vigilant on multiple fronts – be it in the HR office when deciding whom to hire or at any point in your supply chain when choosing your vendors. In other words, the risks to your company have not only multiplied, but they’ve also diversified and now come from every possible angle.
And no single risk management method can keep these threats at bay on its own. Here’s why:
An overview of today’s risk landscape
Greater mistrust and 24-hour news cycles
Companies are facing greater reputational risks now than perhaps at any point in history. Investors and customers not only expect the companies they support to adhere to certain ethical standards, but they’re also quick to hear of missteps and questionable decisions thanks to an ever-watchful 24-hour news media.
Evolving regulatory expectations
Regulatory risks are also on the rise. Local, federal, and global regulations from various governing bodies are cracking down on bribery, corruption, money laundering, terrorist financing, and forced labor. Non-compliance leads to fines and setbacks that negatively affect current and future business contracts, result in investor disapproval, and impede growth.
Reliance on global third-party networks
The more extensive your corporate hierarchy, the more global your supply chain, and the more customer reach you have – the greater your risk exposure. In an increasingly intertwined world of suppliers, partners, customers, and investors, your company will undoubtedly encounter its share of Politically Exposed Persons (PEPs) or people/companies on sanctions lists.
In the face of today’s risk landscape, the reality is that you need a multifaceted approach. One that combines effective and in-depth due diligence together with continuous, real-time risk monitoring.
That’s where LexisNexis comes in.
The case for combined due diligence and risk monitoring
LexisNexis can empower your company to identify, establish, and manage trusted relationships with the customers, partners, suppliers, and other third parties that are critical to your business goals. With a more comprehensive view of risk – enabled by due diligence and continuous monitoring enhanced by an unmatched collected of enriched data – you gain a 360-degree view for informed decision-making.
LexisNexis does this through Nexis Diligence® and Nexis Entity Insight. Alone, they’re two solutions capable of improving the efficiency and effectiveness of your risk management. But together, they enable continuous risk mitigation. When your company utilizes both, here are the top 3 benefits you can gain as a result:
Benefit 1: Intuitive and user-friendly risk management functionality
Through its easy-to-use search interface, Nexis Diligence puts an unmatched, global content collection at your fingertips for expedient and comprehensive due diligence on individuals and entities. Meanwhile, Nexis Entity Insight delivers continuous, real-time visibility into potential risks across your critical business partners, vendors, customers, and suppliers – so that you can respond to threats proactively and mitigate reputational and financial harm.
Benefit 2: Automated risk monitoring and efficient due diligence follow-up
With Nexis Diligence and Nexis Entity Insight working in tandem, you can use your tailored alerts in Entity Insight to inform which risks you should explore further in Nexis Diligence.
Benefit 3: Make your entire risk management process streamlined and efficient
A single search in Nexis Diligence yields relevant results from news sources; sanctions, PEPs, watchlists, and blacklists; public records; country risk reports; and more. It also enables you to quickly refine your results through a series of filters.
Nexis Entity Insight uses a PESTLE analysis framework (People, Economic, Socio-cultural, Technology, Legal, and Environmental) to rapidly identify risks based on your exact risk management needs. You gain a more complete and accurate view of the third parties your company does business with.
Combine your due diligence processes and risk monitoring together
Don’t leave nothing to chance. The greater the visibility you have, the greater your odds at keeping risk at bay and preventing financial and reputational fallout. Learn more about the benefits of Nexis Diligence and Nexis Entity Insight here.