Counterparty Due Diligence

Know your counterparty Assess your counterparty Approach to the business deal with counterparty

When you know more, you risk less. Counterparty Due Diligence is a tailored risk-based solution that makes the third-party business a secured framework, irrespective of the scale and function of the business.

Netrika offerings for Counterparty Due Diligence

  Due diligence on individuals or companies before onboarding and verification

  Regulatory checks for legislative compliance

  Background verification of incumbent business partners

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Counterparty Due Diligence


Our Experts

Sanjay Kaushik
Sanjay Kaushik

Managing Director


Sanjay Kaushik
Col Sanganagouda Dhawalgi

Executive Director-FI


Sanjay Kaushik
Dheeraj Sangal

Director – Forensic Investigations (FI)


Counterparty Due Diligence

Working with various partners is often necessary for effective collaboration in today's fast-paced corporate world. However, not all relationships are made equal, and choosing the wrong path might damage your reputation and bank account.

Counterparty due diligence is a process that helps in collecting as much information as possible about a third party. It helps in validating facts and eliminating assumptions about your clients, channel partners, vendors and any other business associates.

This is where the crucial step of choosing your business partners—counterparty due diligence—comes into play. Here at Netrika, we know how important it is to carry out comprehensive research before partnering. Performing extensive counterparty due diligence to identify potential risks and safeguard your business's interests is our specialty.

Importance of Conducting Counter-party Due Diligence

When a company decides to invest in a promising enterprise, start a joint venture with a partner, take on a large client or an organisation or engage a vendor for his services, it is crucial to get counterparty due diligence done, to ensure that the prospective business partner is capable of fulfilling commitments and the partnership is fruitful. Apart from that, senior management of organisations has often been found to be involved in managerial level fraud, thereby making senior management due diligence equally important when associating with an organisation or an individual. . Here are a few advantages of carrying out counter-party due diligence.

• Risk reduction via thorough investigation

• Safeguarding Investments

• Verifying the Company's Past Performance

• Exposing Fraudulent Activities and Malpractices

• Skilled Management

What Does Counter-party Due Diligence Encompass?

Conducting counterparty due diligence is a complicated and tedious process that often requires the expertise of due diligence service providers. Our experts at Netrika are dedicated to guaranteeing a successful partnership for your company by engaging in an in-depth analysis of the Counter-party's information. The approach is multi-dimensional and involves:

• Identity Verification

• Financial Assessment

• Legal and regulatory compliance

• Reputation/References Research

• Background and history

• Market and Competitor Analysis

• Analyse Digital Footprint

• Due Diligence Report

• Legal Review. Consult with legal professionals to review the due diligence report

• Decision-making

Supply Chain Risks

In the supply chain context, the word "counterparty risk" refers to the potential operational and financial hazards that may arise from a business's dealings with its many vendors, suppliers, and business partners. Fundamentally, it is the chance that a counterparty—like a supplier—won't keep up its end of the agreement, which could lead to a schism in the company, financial losses, or other undesirable consequences.

However, rather than just being viewed as a potential threat, counterparty risk could be welcomed as an opportunity for risk management. Instead of only attempting to reduce risk, businesses can utilize this strategy to identify areas for improvement, form alliances, and develop a more robust and responsive supply chain. Businesses can turn what is typically seen as a liability into a strategic advantage by smoothly incorporating risk assessment into operational strategy.

Counter-party Due Diligence: Best Practises

1. Clear Objectives: Define specific goals and objectives for the counterparty due diligence process to guide the assessment effectively.

2. Comprehensive Information Gathering- Collect detailed information covering legal, financial, operational, and reputational aspects of the counterparty.

3. Regulatory Compliance: Ensure the counterparty's compliance with relevant laws and regulations in its industry and jurisdiction.

4. Financial Health Assessment: Analyse the financial health, creditworthiness, and liquidity of the counterparty through a thorough examination of financial statements.

5. Operational Evaluation: Assess the operational capabilities, including supply chain resilience and production processes, to gauge the counterparty's overall capacity.

6. Expert Involvement: Seek guidance from industry experts or external specialists to enhance the depth and objectivity of the due diligence process.

Cybersecurity and Data Protection

Considering the prevalent cybersecurity threats and the sensitive nature of data, implementing strong security measures becomes crucial. By implementing advanced technologies and employing Counterparty Due Diligence specialists like Netrika, businesses can save themselves from potential cyber threats and shield sensitive information from the accessibility of fraudsters.

Netrika is your experienced partner in the complex world of business partnerships, providing thorough counterparty due diligence. Our experts research deeply into the financial, legal, and reputational facets to make sure your decisions are safe and well-informed, as protecting your privacy is our top priority.

Our Solutions

Our customised approach and analysed output include consent-based due diligence procedures such as:

• Site visits

• Interviews

• Detailed profiling

• Compliance databases

• Litigation and regulatory checks along with adverse information

Our team of expert professionals possess deep data collection capabilities through public domain searches and on-ground data collection. We offer various report types to meet a multitude of your requirements.

What we offer
  • Data with integrity.
  • Our methodologies reflect a strict adherence to industry-recognized standards. Moreover, we deliver one of the highest educations and employment verification rates in the industry.
  • We design products and services that adapt proactively to current and future needs for screening.
  • Compliance-driven Strategies Risk mitigation is a crucial component for successful recruitment when developing the brand.
  • Fast Turnaround Times: To help customers make decisions even faster, we deliver real-time results as they are available, accelerate communications between third parties, and can leverage candidate-provided documentation where appropriate.
  • Global Reach: With today’s globalized workforce, it’s essential that your background check company be able to procure candidate background information from around the world.
  • 100 Years of cumulative Experience You Can Rely On.
  • Member of PBSA- Professional Background Screening Association.

A counterparty due diligence service can help you learn a wide range of details about a person or a company with whom you intend to work together or already have a business relationship.

Organisations are growing internationally and doing business with people and firms in many regions. This calls for the use of counterparties like suppliers/agents, business partners, channel partners, and clients. Although these counterparties are essential for an organisation’s expansion, they also expose the organisation to numerous unanticipated hazards.

If your business does not have extensive information on its prospects, it can expose the organisation to bribery, corruption, organised crime, fraud, money laundering, counterfeiting and risks of defaults.

The absence of adequate counterpart due diligence can bring non-compliance with anti-bribery regulations, reputational risks, costly investigations & remedial programmes, potential civic penalties, negative publicity and wasted management time for your business.

Counterparty due diligence assesses your business and its potential or existing association with another business based on its legal standing, market position and financial position.

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