Contractor risk management
and compliance
The key to success is doing business with reliable contractors who work honestly and transparently and are unlikely to have financial, reputational, criminal, regulatory, sanction or other negative risks.
Process stages:
To make sure your prospective business partner, whether in Ukraine or abroad, is trustworthy, you should take a range of verification steps depending on the status of the partner (vendor or buyer) and the scope of the future agreement.
An audit of the vendor’s products, works or services should be focused on its manufacturing technology and pricing structure. As a rule of thumb, you can achieve the lowest purchase price if you understand how the manufacturer or contractor is involved in the supply chain, and if you know the production cost of the goods or services. It is also important to make sure the vendor has enough qualified personnel, an adequate production infrastructure, all necessary licences and authorisations, is not too busy with third-party orders, and will perform all its contractual obligations on time.
To ensure the highest sales revenue possible, you should check if the potential buyer is the end-user of the product, and if the potential buyer is a commercial agent, it is also economically feasible to find a strategy for entering the end user market independently.
Having analysed the customers’ needs, Business Security Group selects the best current global and local software products and databases to consolidate the maximum amount of information at each stage of the potential partner verification process.
The following data sources are used:
Orbis (Bureau van Dijk) is Bureau van Dijk’s flagship database containing information on more than 375 million businesses from around the world and focused on data about private companies.
Refinitiv (London Stock Exchange Group) is a global provider of financial market and infrastructure data. Its World-Check product is a database of politically exposed persons (PEPs), high-risk persons (individuals and legal entities) searchable by keywords and secondary identifiers.
Dow Jones&Company (The Wall Street Journal) is one of the world’s leading financial information agencies and the publisher of The Wall Street Journal. It is a member of News Group media holding.
SPARK (Interfax) is a product of Interfax-AKI, a member of Interfax Group. This Ukrainian acronym means “the system of professional market and company analysis”.
SPARK has become an international database on companies in the post-Soviet space.
YouControl is an online analytical system which uses over 180 open data sources to generate complete profiles on each Ukrainian business entity, track changes and visualise relations. It contains data necessary to check foreign companies. The technology enables retrieval of real-time information on individuals or legal entities from official sources.
Clarity Projectis an open data analytics system with the functionality of searching for ProZorro procurement and auctions, and sales by a range of criteria. It finds and displays information on bidders and their relations, and tracks procurement, customers or bidders.
Strabis database is an information analysis system designed to accumulate and organise structured information on Ukrainian legal entities in a unified database.
LIGA: ZAKON CONTR AGENT (Softcom) is an analysis and monitoring system for checking companies and enterprises.
The final analytical report is compiled and reviewed on the basis of information on the contractor, its officials and related persons available from official public sources, and the package of documents provided by the contractor for verification purposes.
Once the documentary check has been completed, the customer may want to visit the contractor’s production and warehouse premises to check the declared capacities, particularly with the involvement of third-party experts, depending on the nature of the company’s operations.
A complete analytical report containing details on a prospective or existing contractor is provided to the customer. These data enable the customer to make a prompt informed decision and avoid the negative consequences of risks.
