Risks in international trade often arise not with the direct counterparty but at subsequent levels of the supply chain. A company may have a reliable supplier that, in turn, depends on a single factory, logistics operator, technology owner, or subsupplier in another country.
That is why international risk management is gradually shifting from simple counterparty verification to the analysis of broader corporate and supplier relationships. This is particularly relevant for Ukrainian businesses because of the war, complicated logistics, sanctions regimes, and the high dependence of many industries on imported raw materials and equipment.
“A company may know its direct partner well and, at the same time, may not know on whom that partner’s operations critically depend. A single problematic subsupplier, a sanctions-related connection, or a production shutdown at the other end of the chain can disrupt a contract in Ukraine. Therefore, modern verification must answer not only the question ‘Who is our partner?’ but also ‘Who does our partner depend on?’” said Maksym Urakin, head of the D&B — Interfax-Ukraine business unit and Candidate of Economic Sciences.
Risk factors include the excessive concentration of procurement from a single supplier, dependence on a single region, opaque corporate relationships, sanctions risks, financial problems at a key company in the chain, or a sudden change of ownership.
For critical supplies, companies should develop a pool of alternative suppliers, determine minimum inventory levels, verify corporate groups, and reassess partners in the event of significant changes. This is particularly relevant to the energy sector, mechanical engineering, pharmaceuticals, the food industry, construction, and other sectors in which the disruption of a single component can block the entire production cycle.
D&B solutions in supplier intelligence and business risk management make it possible to work with global business data, corporate relationships, and risk signals. For Ukrainian companies, this information can provide a foundation for building more resilient supply chains.
In the long term, the verification of supplier relationships is becoming not a one-time procedure but part of a business’s operational resilience.
D&B — Interfax-Ukraine helps Ukrainian companies work with international business data and business identification tools.
Dun & Bradstreet is an international provider of business data and analytical solutions whose history began in 1841. D&B works with data on companies worldwide and provides tools for business identification, counterparty verification, credit and commercial risk assessment, compliance, and supply chain management.
The Interfax-Ukraine News Agency is the official representative of Dun & Bradstreet in Ukraine. The specialized D&B — Interfax-Ukraine division provides Ukrainian companies with access to international business data, helps them verify foreign counterparties, and assists them in working with D&B tools.
Questions can be submitted through the specialized D&B resource — dnb.ua, by email at Urakin@interfax.kyiv.ua, or by telephone at +38 (044) 270-65-74.
BUSINESS, D&B, INTERFAX-UKRAINE, RISK MANAGEMENT, SUPPLY CHAINS
The specialized departments of the State Customs Service have begun testing the updated automated risk management system (ASUR 2.0), developed as part of the EU4PFM program support, the authority said on its website.
As indicated by the State Customs Service, the updated system will allow transferring a significant part of data from paper format to digital, and processes will go online.
“In particular, ASUR 2.0 should allow maintaining an electronic register of profiles (replacing the hard-to-use paper one), digitizing the history of the profile (including the history of all actions that occur with this profile),” the service said.
In addition, the updated system contains tools for monitoring and analyzing the effectiveness of risks, as well as analyzing declarations to work on new risks.
ASUR 2.0 has already passed four types of preliminary tests, including stress testing and testing for vulnerabilities. It is equipped with all the required papers, internal regulatory documents have been drawn up, the customs service said.
The National Bank of Ukraine (NBU) intends to impose restrictions on certain types of bank operations in case if the bank’s risk management system is recognized as ineffective. The document comes into force on September 11, 2018. The regulator may also require the bank to suspend or terminate certain types of transactions.
The final decision will be made based on the evaluation of the viability of the bank’s business model, analysis of the provided actual and forecast balance sheet data, profit and loss statements, transactions with related parties, and regulatory capital components.
The National Bank of Ukraine (NBU) has changed the form of a report on risk management in the financial monitoring sphere, which would allow better assessing the risk management systems created by banks. According to a report on the NBU’s website, the new form of the report is outlined in NBU resolution No. 59 dated June 5, 2018, which amends the rules of organizing and holding inspections to prevent and combat money laundering, financing of terrorism, and the financing of proliferation of weapons of mass destruction approved by NBU resolution No. 197 dated June 20, 2011.
The new version of the resolution also changed the frequency of submitting the reports on risk management in the field of financial monitoring – henceforth it will be provided by a bank to the NBU annually, rather than quarterly.
In addition, the NBU introduced a new procedure in case of detection of schemes for conducting risky financial transactions during the on-site inspection, the conclusion on compliance or non-compliance of which with the requirements of the law cannot be presented in the report on the field inspection (without additional consultations). Henceforth, the report would contain details of the essence of the financial transactions revealed with a detailed statement of the relevant facts. The copies of documents certifying these facts are attached to the verification materials.
In the future, the verification of the revealed facts will be continued without interruption.
