How to Achieve Enhanced Due Diligence & Risk Monitoring

15 Sep 2021 11:30 am by Mark Dunn

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Risk professionals often ask our data specialists how data and technology can help them improve their due diligence efforts and proactively mitigate emerging risks. The reality is that due diligence can be cumbersome and risk monitoring is a full-time job, especially in today’s fast-paced digital world. The risk landscape is constantly evolving, compounded by a 24/7/365 news cycle. And traditional approaches to risk management are simply too laborious and time-consuming to keep up.

Fortunately, the vast wealth of data that accumulates today can be used to your advantage—given that you have the technology capable of harnessing it, of course. That’s why we recommend Nexis Diligence for enhanced due diligence and Nexis Entity Insight for continuous, tailored potential risk monitoring.

Here are the answers to some of the most common questions prospective clients regularly ask our data specialists about the benefits of both solutions. Keep reading to learn how your business can achieve effective due diligence and risk monitoring with Nexis.

Question #1: What kinds of datasets will I have access to in these solutions?

Among the multitude of data types made available in Nexis Diligence, you can leverage up-to-date sanctions lists, watchlists and blacklists, and lists of politically exposed persons (PEPs), so you can learn more about individuals and companies to gain a better, more in-depth understanding of potential compliance risk.

Your searches will quickly check more than 1,400 watchlists and blacklists from 80 countries, covering everything from white-collar crimes and terrorist threats to debarred companies. You also gain access to 1.4 million profiles of PEPs, their families, and close associates. And as you conduct comprehensive checks of people and companies by using the single Nexis Diligence interface, you build a holistic, 360-degree view of potential risks.

That said, today’s complex world requires more than effective due diligence, and that’s where Nexis Entity Insight comes in. Much like Nexis Diligence, it has access to the same unmatched wealth of data, but it works to tailor continuous risk monitoring to your precise needs, so you always have a quick view into potential risk across your current business partners, vendors, customers, and suppliers.

Other data types you have at your disposal with Nexis Diligence and Nexis Entity Insight include:

News and web media

Access more than 60,000 global print, broadcast, and web news media sources, including newspapers, newswires, press releases, magazines, trade publications, and broadcast transcripts. Regulators recommend the inclusion of adverse news searches as part of your due diligence program, and Nexis solutions give you comprehensive news coverage complemented by substantial archived data to help you uncover patterns of negative activity.

You can also flesh out your due diligence report and enhance your ongoing risk monitoring with access to general news data for background on a company’s management, as well as updates on personnel and company developments.

Company reports

We provide data from more than 400 databases and over 280 million global public and private companies in developed in emerging markets. You not only have access to corporate hierarchy data and executive profiles, you also have the ability to search for and retrieve annual reports, SEC and other fillings, bankruptcy reports, merger and acquisition transactions, and earnings information.

Legal information

Gain a deep understanding of a company’s or person’s litigation history before engaging in business—and potentially save yourself from the financial and reputational fallout of legal entanglements. Our Nexis solutions give you data on decided court cases—civil and criminal—from state, federal, and international courts.

Question #2: How can Nexis solutions make my due diligence and risk monitoring more efficient?

Nexis Diligence and Nexis Entity Insight work in tandem to rapidly elevate any and all financial, regulatory, or reputational risk to the surface. First, Nexis Diligence lets you conduct comprehensive due diligence while maintaining regulatory compliance. On a single platform, you can vet and monitor clients, agents, partners, suppliers, investments, and other third parties quickly. Additionally, you can even automate your due diligence using Nexis Diligence with Robotic Process Automation (RPA).

Then, once your due diligence on a third party is complete, Nexis Entity Insight helps you stay on top of any potential risk that might emerge over time. Risk monitoring is normally a time-consuming task, but Nexis Entity Insight automates risk monitoring for you. It tailors your risk monitoring and enables a swift response to potential threats by applying the PESTLE (Political, Economic, Societal, Technological, Legal, and Environmental) analysis framework to your third-party relationships and scoring risk based on your custom-defined set of needs. You can also choose to be notified of high-priority risk concerns via email, so you can quickly escalate red flags for further assessment.

Question #3: What are some of the practical benefits of using Nexis solutions for due diligence and risk monitoring?

Aside from a more efficient due diligence process and continuous risk monitoring, Nexis Diligence and Nexis Entity Insight both offer no shortage of features that optimize every aspect of risk management.

For example, Nexis Diligence automatically builds and maintains an auditable report while you conduct your searches. You always have a history of the searches you perform, along with information regarding how the search was conducted and the number of results that were found. You can rerun a search from your search history anytime for up to 30 days after the initial search.

Nexis Diligence also lets you create notifications to monitor your third parties for new information. Customize an alert to focus on a specific content type and set how often you would like the alert to run. If any new information about the third party is published, you’ll be notified. And with the Report Builder feature in Nexis Diligence, you can easily share your due diligence findings with key personnel. Once your documents have been collected into a central report, you can add notes to explain or summarize the finer details of your due diligence research. You can organize the report’s contents to put the most important data first, and a research summary at the end of the report provides an audit trail of how you conducted your research.

Meanwhile, Nexis Entity Insight not only feeds vast quantities of data to categorize and identify risk based on your customized risk scorecards, but it also visualizes potential risks and risk trends. So, you gain customized risk monitoring with visualized analyses that make it easier to understand and react to potential risks.

When it comes to risk management, don’t leave anything to chance. Make sure you have the due diligence and risk monitoring capabilities in place to uncover and respond to risk in all its varieties, anytime it appears. Learn more about these and our other Nexis offerings by exploring our entire Nexis solutions product suite.