The role of market intelligence is changing in the face of increasing interest in reputational risk and the need by all companies to know their suppliers and manage financial risk.
As well as basic checks, such as creditworthiness, companies now need to ensure their suppliers are not associated with politically exposed persons (PEPs) and companies or individuals who are on sanctions lists. This helps them avoid the taint of corruption or bribery and to make sure they’re not facilitating a flow of funds to individuals or organisations that would be restricted by law.
“We’re finding there’s an increasing appetite for information that can help companies check suppliers more rigorously as the increasingly serious consequences if they fail to do so become more apparent,” says Tony Pringle, chief sales officer at company information experts Bureau van Dijk. “These consequences aren’t just financial, but can have a significant impact on their reputation and perception with stakeholders. We’re also finding that some companies have to fulfil requirements as part of the terms of their credit agreements.”
As they seek to ensure that they have managed their risk effectively and meet the growing demands of regulators and a public that is increasingly active and engaged in these issues, Bureau van Dijk’s clients have access to a product range that includes data bases of company information, including financials, financial strength, directors, managers and other individuals associated with companies, and detailed corporate structures – all screened against PEPs and sanction lists.
The intelligence that Bureau van Dijk helps its clients to blend with their own is unique in its comprehensive coverage, scope and detail
“Companies already have a lot of information about their suppliers. To get a more complete risk picture they are blending their information with the content in our extensive data bases,” says Mr Pringle. “We provide platforms where content can be blended, then dashboards and other analyses provide them with bespoke insight into their customers and suppliers. They can look at risk across their portfolio, and get a detailed view of risk associated with individual companies and corporate groups, complete with an audit trail of their research.”
Customers of Bureau van Dijk have access to its Orbis global data base, which combines information from more than 120 sources and covers nearly 150 million companies. Intelligence can be blended in various platforms, called catalysts, looking at credit risk, supplier risk management and compliance.
The intelligence that Bureau van Dijk helps its clients to blend with their own is unique in its comprehensive coverage, scope and detail. “We have extensive coverage of private companies, detailed company hierarchies and standardised financial reports so you can also compare companies across borders,” says Mr Pringle. “We also offer a simple, intuitive interface that presents sophisticated information in simple-to-interpret and visual formats.
“When it comes to customer and supplier due diligence and risk management, each company has its own priorities and requirements,” he says. “But as additional requirements for transparency and reporting along risk lines become more pervasive, solutions that deliver relevant information and help manage the right processes, without creating a drag on efficiency, are increasingly in demand.”