A business partner check helps companies minimize the risk when working with suppliers, customers, subcontractors and other third parties. The background check of one's own business partners should take place before a business transaction is concluded and during the business relationship as well as on an ongoing basis.
During a business partner check, the focus in generally on reviewing the following points:
- Liquidity, credit rating, balance sheet
- Publicly available information on the business partner
- Relevant incidents under German corporate law (e.g. change of managing director)
- Business activities in sensitive business areas
- Public conduct of the business partner (also in the past)
Adequate checks of business partners help to relieve the company and affected employees of the burden of accusations of negligence in the event of any subsequent legal disputes since proof of the application of "necessary diligence" as well as the detection of existing risks can be provided at an early stage and possible opportunities and risks can be better assessed.
In this way, potential liability risks for the company and, above all, for the managing directors who are personally liable with their private assets can be avoided. In addition, reputational losses can be ruled out in advance if, for example, attention is directed to the sustainable environmental performance of a business partner, so as to avoid public discredit in case of doubt.
A business partner background check as an instrument for preventing white-collar crime is subject to a complex regulatory framework in Germany. At the same time, a business partner check serves to protect the interests of every company participating in the economic life of the primary company. For this reason, companies are exposed to severe penalties and reputational damage in the event of non-compliance.
A functioning compliance management system in Germany not only includes guidelines, regulations and corresponding requirements but is, to a greater degree, an active process that takes into account the respective risks of the company. A fundamental part of this is the continuous screening of companies or partners with which the primary company collaborates. Otherwise, not only the risk of reputational damage but also the occurrence of liability cases are very high.
We undertake the national and international execution of comprehensive business partner checks for our clients. In doing so, we identify, record and evaluate potential risks arising from a collaboration. We classify these risks and - if indicated - carry out a comprehensive business partner due diligence. We suggest necessary approval procedures and regularly monitor the progress of the relationship and the conduct of the business partner.
Are you interested in preventing payment defaults and avoiding possible disputes when working with business partners? We will gladly take over the review process of your business partners for you. Y
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