Refinitiv has launched a new AI-powered due diligence report to help businesses stay on top of the risks associated with increasingly complex supply chains.
The data-driven ‘Snapshot’ report offers a quick and cost-effective review of suppliers and business interests to help companies better evaluate the perceived risks presented.
World events such as the Covid-19 pandemic together with regulatory developments including the proposed corporate due diligence legislation from the European Commission, have resulted in an unprecedented level of scrutiny on business supply chains.
Despite these pressures, research from Refinitiv shows that as much as 43% of third-party relationships are not subject to any form of due diligence checks. With companies having an average of 10,000 third-party relationships, many organisations are not fully managing supply chain risk.
Refinitiv’s new Snapshot report addresses the growing need for affordable, preliminary assessments of third parties by delivering a concise, indicative view of potential risks that can be used to prioritise business relationships. Snapshot is a pre-due diligence report that acts as a first step in the due diligence process. Based on the results of Snapshot, organisations can take a risk-based approach to prioritise and determine their next steps.
Snapshot leverages AI and natural language processing (NLP) to create a consolidated view of public domain information, including company details, risk intelligence from Refinitiv’s World-Check, as well as adverse media and country risk information.
Insights from the Snapshot reports are presented in a highly intuitive format, offering an easy to read consistent, tabular layout to quickly pinpoint relevant information. In addition, the “attended automation” format, means that report sections are produced using automated technology and then checked, synthesised and enhanced by Refinitiv’s 450 strong team of analysts.
“Companies today have an enormous challenge when it comes to onboarding new suppliers and staying on top of the thousands of third-party relationships they may have,” said Charles Minutella, Head of Due Diligence Services at Refinitiv. “In addition, the legal, reputational and financial costs of not performing adequate due diligence on supply chains are increasing rapidly around the world, particularly at a time when regulators are looking more closely at corporate due diligence practices.”
“Refinitiv’s Snapshot report is an innovative development that incorporates intelligent technology and reliable data to enable organisations to know more about a large number of their relationships,” adds Minutella. “It allows organisations to make quicker, better decisions while meeting their compliance and regulatory obligations.”
The launch of the Snapshot report is the latest in a string of investments by Refinitiv designed to support the risk and compliance needs of its corporate customers. It follows the recent acquisition of The Red Flag Group, and its partnership with ESG and NGO data provider SigWatch.