Questions to ask before selecting a platform for due diligence

In simple terms, due diligence is the business process by which, typically, an investor investigates or audits a potential investment concluded by a prospective buyer. A due diligence platform helps in managing the volume of work that a compliance officer needs to handle during the audit.

To ensure that the platform is capable of sufficing your requirements, you need to ask questions such as –

The questions that can ensure the effectiveness of the platform

  1. Is the platform ready to take a risk-based approach?

The compliance program can achieve success if the platform is capable of taking a risk-based approach. The due diligence platform must be able to identify high-risk factors in transactions and provide more scrutiny to the third party involved.

  1. Is the solution equipped enough to pull relevant data?

For the risk analysis of the potential transaction, the platform should be able to pull different types of data concerning the third party and assess risks based on that.

  1. Can it work with multiple languages?

If your business is global or even handles trades out of your region where you need to assess due diligence on different languages, then the platform must support multiple languages. This means that the platform must handle documents written in different languages.

  1. Can it provide flexibility in onboarding processes?

With the growth of your business, the due diligence platform must be flexible enough to evaluate the risks in newly evolved areas. The platform must adapt to the changes and expand the abilities according to them.

  1. Is centralization of data possible with it?

An effective due diligence platform stores all third parties information in one repository. That means a single source of data is created and your compliance officer need not run for data everywhere.