{"id":1800,"date":"2023-12-14T09:55:22","date_gmt":"2023-12-14T09:55:22","guid":{"rendered":"https:\/\/nielsonsmith.com\/?p=1800"},"modified":"2024-04-19T13:22:24","modified_gmt":"2024-04-19T12:22:24","slug":"trade-compliance-due-diligence-challenges-and-recommendations","status":"publish","type":"post","link":"https:\/\/nielsonsmith.com\/fi\/trade-compliance-due-diligence-challenges-and-recommendations\/","title":{"rendered":"Kaupan s\u00e4\u00e4nt\u00f6jenmukaisuuden due diligence -haasteet ja suositukset"},"content":{"rendered":"

Article by Galina Free<\/a>:
Director, Global Trade Compliance at Danaher Corporation<\/strong><\/p>\n\n\n\n

Over recent years, the unprecedented surge in export rules and regulations has left many companies questioning whether their existing due diligence processes are equipped to handle the growing complexity. The mounting demand to identify restricted parties in specific industries or sectors, even when they aren’t listed in standard “entity” or “military end-user” lists, for example, has imposed substantial compliance burdens, leading companies to rely on manual and time-consuming due diligence processes.<\/p>\n\n\n\n

One approach to identifying potentially “risky transactions” involves establishing rules within commercially available screening tools and training order management teams. However, both methods have their limitations. Screening tools may flag parties based on published “restricted lists.” Order management teams, while valuable, may lack the expertise of trade compliance professionals and can only perform initial screening based on their limited knowledge. Consequently, more and more transactions require manual review by the trade compliance department, which is unsustainable for companies handling hundreds or even thousands of orders daily.<\/p>\n\n\n\n

\"Sanctions<\/a><\/figure>
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Ms. Galina Free is a Speaker at Nielsonsmith Sanctions and Export Compliance in Life Sciences Conference, USA<\/a>.<\/strong><\/p>\n<\/div><\/div>\n\n\n\n

Companies that have invested significant resources and time in integration may find their current screening solutions struggle to keep up. In contrast, newer, more sophisticated screening and due diligence providers promise more robust solutions. But the high switching costs make transitioning to these newer providers challenging.<\/p>\n\n\n\n

The combination of limited trade compliance resources, insufficient capabilities of commercially available screening and due diligence tools, and the rising volume of transactions requiring due diligence has made compliance more complicated and expensive than ever. So, what should trade compliance professionals consider in this complex landscape?<\/p>\n\n\n\n

While there’s no one-size-fits-all solution, companies must tailor their trade compliance program to their specific supply chains, business models, and products. Here are some helpful strategies to consider:<\/p>\n\n\n\n

Conduct a Risk Assessment:<\/strong><\/h2>\n\n\n\n

Develop a company-specific risk matrix that takes into account destination risk, end-user risk, product risk, and perceived compliance risk. Calculate the risk score, which will be a foundation for shaping screening and due diligence decisions.<\/p>\n\n\n\n

\"Risk<\/figure>\n\n\n\n

Document Screening Procedures and Standards, including:<\/strong><\/h2>\n\n\n\n