4 Steps to Effective Third-Party Due Diligence

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If youre like most businesses, you have a host
of third-parties that you depend on to support
your core business functions.
Third parties may include
As organizations benefit from multiple
connections, they also face the challenges of
managing the vast network of third-party spread
across geographies.
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Many of these third parties have access to your
internal network
Some are directly associated with your clients
Some are highly crucial for your production
process
All these factors put third parties in a position
from where they can directly affect your
business as well as reputation. Hence, it is
required to perform due diligence prior to hiring
a third party.
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Identify The Right Supplier
For any business, having the right supplies is
critical.
Meeting your production timetables takes a toll
if your suppliers take forever to get you the
supplies you need to start work in the first
place.
This holds especially true for manufacturers, who
depend on their suppliers for quality materials
and tools to produce top-notch results for their
own clients.
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Your supplier should also be able to take your
product and service to the market to the right
customer and in the right quantity.
A few things that you should consider while
screening a supplier could be
Checking their past history with other clients
Average wait time for an order to be fulfilled
Certifications valid documents
Consistency in delivering products services on
time
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Geographical Demographical Assessment
High-speed internet has become so easily
accessible around the globe, that many
entrepreneurs assume the world to be one big
homogeneous market and project their business to
scale accordingly.
Many-a-times, this leads to the businesses
failure in addressing the real cultural, economic
and political differences.
In order to avoid the most common mistake of
overestimating a markets potential, do not base
the results on your domestic context.
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When dealing in a financially volatile foreign
market, it is always wise to be prepared for
large and frequent economic swings.
The cost of doing business in any market is
largely dependent on
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Download A Business Information Report
A typical business information report from CRIF
provides basic supplier company information such
as business registration details, legal forms,
and address apart from the financial information.
You can use this detailed report to help mitigate
potential business risks by assessing a companys
operations, financial performance public filing
records.
Business information report helps you conduct due
diligence checks and enable faster decision
making without additional risk.
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CRIFs business information report helps in buyer
and supplier risk assessment which includes
It also consists of a supplier risk assessment
rating to understand the risk level of the
supplier.
Bank details such as accounts, loans along with
name, address and branch of the bank used by the
company and other historical details about the
management.
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Review Your Due-diligence Process Regularly
Commit to recurrent reviews with stakeholders to
ensure that your due-diligence process is always
aligned with those needs over time.
Companies focus so much on the initial screening
process that they forget the importance of
continuous monitoring of their third parties.
There is nothing worse than an effective
initial review of the due diligence process
without any follow up.
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Interested to know how CRIF's Business
Information Report can help mitigate potential
risks?
https//campaigns.crifhighmark.com/BusinessInforma
tion