How to reduce fraud with integrated risk solution processes

November 17, 2020
How to reduce fraud with integrated risk solution processes

Risk management is a crucial part of any business, which is why companies work to analyse potential customers, clients and partners before onboarding. UK regulation requires businesses to perform due diligence in order to remain compliant with all applicable codes. However, businesses need to go beyond the legally mandated minimum if they are to keep themselves safe from fraud or deceit.

Of course, there is always an element of risk when onboarding a new customer, but this risk can, and should, be mitigated with insight and understanding. By arming themselves with the right solutions, businesses become protected throughout risk selection, customer onboarding, and ongoing monitoring processes.

The key pain points experienced by UK businesses

Before we take a look at the solution, let's first examine the key challenges that UK business owners experience.

Regulatory risk exposure

Businesses are governed by a range of different rules and regulations imposed by a number of different bodies. These regulations are subject to change at any time, which puts businesses at risk of being left exposed and non-compliant.

Inaccurate and old customer data

Gathering and working with data needs to be an ongoing process that reflects the ever-changing nature of the market and the customer base. If businesses fall behind in this regard, they risk working with out-of-date information or information that is low-quality and not fit for purpose. This of course leads to increased risk, as the data is not rich enough to provide real insight into potential partners or customers.

Cumbersome manual processes

Business operations are evolving beyond a reliance on human activity and oversight. In fact, sticking with overlong, manual processes while performing due diligence is putting your business at a disadvantage, and could be increasing the potential for fraud.

Too many tools and systems

Overloading your operations with tools and systems creates more potential for fraud. Managing such digital infrastructure becomes difficult, while overlaps decrease efficiency and gaps increase risk.

A lack of understanding of intrinsic nature

It's not always easy to spot the intrinsic nature of a business. This increases risk exposure, as business owners do not discover the true nature of potential customers and clients until it is too late.

The DueDil integrated risk solution process: A direct route to risk management

DueDil is designed to ease these pain points by providing an all-in-one technological solution for risk selection, onboarding and management. In this sense, DueDil equips businesses with comprehensive risk management capabilities.

This is achieved via the Business Information Graph (B.I.G.)™, a facility that brings together data derived from billions of different sources. In essence, the solution provides a centralised hub for insight and understanding, covering more than 270 million connections between companies, directors and shareholders.

The idea is to give business owners an unprecedented vantage point from which to view their business and examine key risks and opportunities. In turn, this results in a far more informed, rationalised and effective decision-making process.

Understanding how DueDil's Business Information Graph works

DueDil's KYB for Life platform helps businesses begin at the very start, working with customers and clients that will drive the business forward and avoiding interactions with fraudulent or misleading individuals and organisations. 

As a vast and ever-growing resource, B.I.G. gives small and medium-sized enterprises the opportunity to get to know potential customers and clients before that crucial first contact, as well as the chance to leverage key insights that assist with the decision making process. Around 45 per cent of the information that can be derived from the B.I.G. cannot be found anywhere else.

Automated functionality allows business owners to verify the identity of potential customers and clients, as well as completing Anti-Money Laundering (AML) and due diligence screening in real time. KYB for Life users can draw upon fresh insights from specific companies, accessing this data via the web app or native interface, or even via direct interaction with other platforms via the API, quickly and effectively.

All of this feeds directly back into the business, smoothing out key points of friction in the following ways:

- B.I.G. remains fully compliant with evolving regulations

- Data is analysed and gathered from billions of different sources daily, so it is always up-to-date and high-quality

- Automation eliminates many of the manual processes associated with performing due diligence

- The centralised system eliminates overlaps and gaps

- Streamlined design and real-time updates provide understanding and insight into the nature of potential customers and clients

Discover more about DueDil, the B.I.G. and KYB for Life

Learn more about the Business Information Graph (B.I.G.)™ and our KYB for LIfe solution right here. Alternatively, reach out to our team with any questions or queries about what we can do for you.

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