Top Six Questions to Ask Your Due Diligence Tool

Performing due diligence on third-party entities is a crucial part of any risk management program. However, traditional manual approaches often fall short, proving inadequate for regularly screening large volumes of partners, vendors, customers and more.

Choosing the right due diligence tool like Nexis Diligence+ can transform the process through automation and enhanced insights. But with many options on the market, how do you select a solution worthy of investment?

By asking the right questions, you can zero in on platforms with standout capabilities in key areas. Here are top features to look for when evaluating due diligence tools to find the optimal match.

What is the breadth and quality of the data sources?

Your due diligence efforts will only be as good as the data you’re using. But in this ever-shifting data landscape, it can be hard to identify quality data to get the maximum benefit from your qualitative and quantitative risk analysis.

Furthermore, because the regulatory landscape changes quickly, you need data sources that are up to date with reliable information. Conducting research with limited data sources and search engines that too heavily rely on historical data can therefore mean that you’re making decisions on outdated information.

To account for this, you need a technical solution that spans reputable premium sources and more. Unlike a limited database or the open web, Nexis Diligence+ offers access to content aggreged specifically for due diligence. This includes over 50,000 news sources, beneficial ownership data, sanction lists, company and financial data, and much more.

MORE: Nexis Diligence+: Unrivalled content for unrivalled confidence

Can I set up automatic screening and alerts?

Even if you have done your initial due diligence screening, the threats of risks don’t stop there. You still need to conduct ongoing monitoring of the relationship to provide visibility into emerging red flags that could put your organization at risk.

As regulation changes, it's important to ensure your partners maintain compliance with new legislation. Additionally, new leadership or negative news could compromise what an existing partnership, and ongoing monitoring will allow you to decide if and when it's time to cut ties.

The due diligence solutions best solutions automatically screen entities against watchlists, politically exposed persons (PEP) data, sanctions and more.

For example, Nexis Diligence+ screens key entities against over 500 lists including OFAC, regional sanctions and enforcement lists, in addition to other news and legal sources. This allows you to identify potential issues early through continuous monitoring versus periodic manual checks, giving you the ability to get ahead of any problems. Additionally, you can set up custom alerts to notify you when new relevant content is detected to stay on top of emerging risks.

Finally, the automated report builder within Nexis Diligence+ helps you create customized, auditable reports quickly and share them with key stakeholders so your entire organization can be informed of any potential risks.

MORE: Due Diligence Checklist

Can it scale to match the growth of my program or organization?

As your needs expand, the platform should efficiently scale up to handle high user and entity volumes. If you are stuck checking one entity at a time, you won’t be able to complete your due diligence reports as quickly as you need them. Bottlenecks like this waste time and put you behind on critical screening. This is why it’s important to prioritize scalable, enterprise-level solutions that integrate with your risk management workflows.

Nexis Diligence+ can scale to accommodate large due diligence programs with its robust infrastructure. Upload and screen multiple companies or individuals in one easy search, saving you considerable time. This could help you to better comprehend the complex relationships and affiliations between companies and individuals or companies and other companies because all of the information you need is in one place.

Is there an intuitive interface for rapid adoption?

A due diligence tool that is complicated to use with a lot of upfront challenges almost defeats the purpose of having the technology in the first place. When integrating a due diligence tool into your workflow, prioritize a tool with an intuitive interface, which minimizes training time so new users can quickly begin conducting searches.

Less complexity means your team can focus on the due diligence itself rather than learning the tool, saving you time in the long run. Look for simplified navigation, guided workflows, and built-in assistance.

Nexis Diligence+ provides an easy-to-use dashboard, guided workflows, and in-platform support. The workspace allows you to easily glance at vital risk information, visualize analytics and key data points, and filter and annotate your findings so you can easily share key information with decision makers.

MORE: Ten trends in third party risk and how to manage them effectively

Does it have integrated reporting capabilities?

Conducting due diligence research is only half of the battle. You’ll then need to assemble an auditable report that collects and summarizes key findings to share with leadership and stakeholders. While you could create this report on your own—which would take extra time, resources, and money—an automated report builder helps you streamline the process and focus on what’s important while providing transparency into the process and rationale behind decisions.

The automated report builder within Nexis Diligence+ enables you to compile findings, risk scores, and supporting evidence into sharable reports easily. 

MORE: Nine steps for better third party anti-bribery and corruption due diligence

Will it make my workflow faster?

The right technology not only enhances diligence capabilities, but it also boosts speed and efficiency. Prioritize tools providing suggested search terms, automation, and shortcuts to help compress process timelines.

Nexis Diligence+ provides alerts, prioritized results, and workflow automation to accelerate due diligence. The all-in-one platform allows you to instantly make connections between seemingly unrelated entities during vetting process of third-party risks.

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Does it save me time and money?

Conducting due diligence is your insurance policy. Sure, you can get by with an open web search or other database search, but if your information isn’t complete or it’s in accurate, you run the risk of facing major financial and legal consequences.

Nexis Diligence+ customers could save money with access to a collection of data through one, easy-to-use platform. Our customized solutions are framed around sets of core features and content with access ranging from a single license to large-scale enterprise, so prices and subscription plans vary from one client to the next, making sure you get exactly what you need. 

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