Counterparty Due Diligence


Our Experts

Sanjay Kaushik
Sanjay Kaushik

Managing Director


Sanjay Kaushik
Col Sanganagouda Dhawalgi

Executive Director-FI


Sanjay Kaushik
Dheeraj Sangal

Director – Forensic Investigations (FI)


Counterparty Due Diligence

For any kind of business to succeed, they cannot stay away from third-party assistance. They can make or break the reputation of a company. Hence, organisations need to exercise caution. Carrying due diligence is necessary before you associate yourself with someone else for business. Investing a little in this exercise at the start can save businesses millions in the long run.

As the number and complexity of relationships that a business has with various counterparties increases, through and comprehensive oversight becomes essential to achieve success. Failure to appropriately assess and manage the risks of your counterparties can inevitably lead to reputational damage, operational risk, and financial loss in the prevailing landscape of growing regulatory scrutiny and increased demand for transparency and accountability. Due diligence on counterparties has become even more essential as the enforcement of regulations, such as the:

These regulations have made it mandatory to implement counterparty due diligence programmes.

Being among the market leaders in this domain, we carry a deep and comprehensive understanding of conducting rigorous counterparty due diligence through published sources and relevant data collection, in order to identify potential risks and mitigate issues of possible concern.

Our customised approach and analysed output include consent-based due diligence procedures such as:

  • Site visits
  • Interviews
  • Detailed profiling
  • Compliance databases
  • Litigation and regulatory checks along with adverse information

Our team of expert professionals possess deep data collection capabilities through public domain searches and on-ground data collection. We offer various report types to meet a multitude of your requirements.

What Is The Importance Of Counter Party Due Diligence?

When your company decides to invest in a promising enterprise, start a joint venture with a partner, take on a large client or an organisation or engage a vendor for his services, it is very important to get counter party due diligence done, in order to make sure that the prospective business partner will be capable of fulfilling the commitments done and the partnership will prove to be fruitful. Apart from that, it has been often found that senior management of an organisation is often involved in managerial level frauds. Hence, when you associate with an organisation or an individual senior management due diligence is equally important.

Some benefits you can reap after doing counter party due diligence have been entailed below.

  • In order to be viable, companies need to be agile and efficient. A business relationship is a complex network holding n number of risks running through it. Any questionable practice or unethical behaviour at the organisational level can risk the investments done over it. Due diligence has come up as a promising solution to rule out this risk factor.
  • When you enter into a merger or business partnership, the organisation needs to make sure that the prospective business partner does not have a poor history of monetary frauds, performance, litigation issues, any kind of reputation issues, and links to any kind of organised crimes or even political exposure. All this can have an impact on the reputation of the organisation and they surely do not wish to risk it.
  • There is no denial of the fact that experts of industry practice and dynamics can work efficiently in the technical appraisal of an enterprise of the prospective partner but the facts and figures hidden wilfully can only be uncovered and exposed by skilled due diligence.
  • It has been often observed that entities that look to be clean are usually filled with multiple skeletons in their closets which can be outrightly exposed by due diligence.

To know more about counter party due diligence, you can get in touch with an industry expert such as Netrika. Due diligence is an important and sensitive matter that should only be handled by experts.



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