Global business operations involve
dealing with a plethora of partners, vendors, and other business partners. As a
result, the company is at risk from regulatory, financial, strategic and
reputational threats due to a very complex network of third parties. Thus, it
is necessary to get important business intelligence on the third parties to
ward off such threats. This is called third partyrisk management.
The Lexis Nexis Research solutions offer effective tools to get
complete information about third-party entities and manage them easily. Some of
the tools have been discussed here.
Diligence spotter
LexisNexis HongKong diligence spotter searches international sources for Company information databases or individual information.
The third parties are screened against Interpol notices, PEPs, and sanctions.
The tool also generates AML and MiFID risk profiles. Complete risk assessment
is done to identify potential risks that require greater research.
The LexisNexis Supplier risk management tool also enables automatic batch
screening of current and new third-party entities. Automatic batch screening
refers to the process of automatic checking of the third party entities against
official sanction lists, Interpol lists, and other international lists. Thus,
their credentials are verified for the benefit of the client company.
The third parties are classified by
geographical exposure, activity, origin of clients and KYC compliance. Far reaching case administration alongside work
process and review devices help in influencing the screening to process much
more effective.
Integra Check
If the risk level indicates deeper
research on the third party entity or the diligence spotter identifies a risk,
then the third party risk management
tool comes into play. This tool enables further investigation into the
concerned third party entities for more thorough screening. This ensures that
integrity and compliance risks are eliminated.
LexisNexis Entity
LexisNexis Entity is a
cost-effective part of LexisNexis Supplier
risk management system. The Entity gives access to a wealth of market
intelligence which is not available on the open web. This is possible because
it does not use conventional search engine method for research.
LexisNexis Entity uses PESTLE
framework for Supplier risk management.
PESTLE analysis framework uses Political, Economic, Socio-cultural,
Technological, Legal and Environmental factors for media monitoring and
research. The client companies are provided analytics and result visualizations
to get an apparent picture of the third party networks and supply chains. Thus,
the companies can identify and manage the risks in a more efficient manner.
The sources of research and
monitoring include news, industry and trade journals, business information or journals, regulatory information, legal publications sanctions, PEP lists
and more.
The company can customize risk
analysis functions of the tool to identify the most crucial risk concerns that
affect it.
Regulatory compliance
Compliance Solution with the local and global
rules and regulations is more difficult for companies engaged in international
trade. LexisNexis helps in protecting the business interests by the following
methods.
•
Regular monitoring of suppliers and third-party risks to ensure complete
compliance with the regulations.
•
Business information of
third-party entities which help the company in determining their track record
and presence of litigation.
•
Regular monitoring of Regulatoryinformation to ensure that the client company is always aware of the
changes in the rules and regulations from time to time.
Financial risk in the form of
fines, settlements, and others is averted by preventing compliance failures.
