The questions behind counterparty diligence

Counterparty research helps decision-makers understand who they are dealing with and what requires closer examination. A useful brief starts with the nature of the relationship and the potential exposure.

Prioritise relevant evidence
The scope should reflect the commercial decision. Ownership, operating history and disclosed relationships may have different significance depending on the transaction.

Explain what remains unknown
The final assessment should preserve uncertainty where the records do not support a firm conclusion. Identifying a gap is often more useful than filling it with an unsupported assumption.