Corporate Guidance for a Risk-Based Approach to Due Diligence

Adapted from Corporate Practice Portfolio Series No. 103, Corporate Compliance: Building a World-Class Borderless Ethics Compliance Program, by Jack Quinn, partner, Manatt, Phelps & Phillips, LLP; and Suzanne Rich Folsom, senior vice president and general counsel, Philip Morris International Inc.; et al. Bloomberg Law subscribers can access the portfolio here. Not a subscriber? Request a demo to learn more.

Companies interact with myriad entities and individuals, including suppliers, business partners, and consultants. It’s important to keep track of these relationships and understand the compliance risks that they might pose. Due diligence is a cornerstone of an effective contract management process because it provides a way for corporations to independently and objectively assess the many risks associated with entering a legal contract with a third party. In addition, organizations facing criminal liability can receive a reduced sentence under the U.S. Sentencing Guidelines if they are able to demonstrate an effective compliance and ethics program that uses due diligence to help prevent and detect criminal conduct.

But how does a corporation determine what level of due diligence is necessary? What constitutes a “meaningful” due diligence review? And how does a corporation effectively incorporate due diligence into its compliance program?

Bloomberg Law Contract Solutions helps you comply with confidence

With the ever-expanding globalization of business, due diligence has become increasingly important to guard against corruption-related legal liability and reputational risks. Download our GC Guide to Navigating 2024: Transactions and Contracts for insightful analysis and practical guidance to help you prepare for key transactions and contract developments impacting in-house legal teams in the year ahead, including new export controls for global trade and a new approach to M&A due diligence.

Automating parts of the contract management process can take the research burden off attorneys, save them time, and help ensure compliance. Software solutions can make contract workflows more efficient, but more than half of all contract workflow technology survey respondents aren’t using a single platform or use general document systems to manage contracts – and of those who are, 3 out of 4 in-house counsel are dissatisfied with their existing contract workflow technology.

Bloomberg Law Contract Solutions is designed to solve the most pressing workflow challenges for in-house counsel, with minimal time and resources needed to onboard, implement, and use. Request a demo how Contract Solutions can help you more efficiently store, manage, draft, negotiate, and analyze contracts.

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