Digital Technologies: New Reality of Counterparty Reliability Analysis

Abstract

The research carried the potential analysis for using digital tools to verify the due diligence of a counterparty out at the stage of pre-contractual interaction with the organization, which allows for reduced possible financial, legal, reputational and tax risks. When using specialized platforms and online services, it can reduce the expected time spent on such an assessment by preparing a comprehensive report that reflects the fundamental aspects of the activities of a potential business partner. The digital products presented on the market are able to provide a detailed analysis of the financial position of the audited economic entity, its legal status, business reputation and affiliation with other legal entities. The information obtained allows us to determine the vector of further cooperation. The aim of the work is to consider the possibility and prospects for the use of digital tools during the procedure of contractual due diligence, carried out by specialized organizations; the authors identified the primary advantages of using these technologies, which are to reduce the time spent on collecting and analyzing information about the counterparty and providing expanded access to various databases. The study used methods of synthesis, comparative and logical analysis. The practical significance of the research is because experts have been conducting the contractual due diligence procedure when deciding on the possibility of using a particular online service in their work can use the presented results of the comparative characteristics of the considered digital tools.

Keywords

• counterparty reliability
• contractual due diligence
• digital tools
• specialized platforms
• online services
• financial condition of the organization