Counterparty risk: a 10‑minute due‑diligence checklist
Practical guidance for finance and operations teams. This content is informational and not investment advice.
Start with the basics: verify legal entity data, registered address, and signatory authority. If you operate internationally, confirm the jurisdiction and governing-law expectations for disputes.
Assess payment behavior: historical terms, dispute frequency, and concentration risk. For marketplaces, segment by cohorts and monitor changes monthly.
If a partner requests settlement in crypto, treat it as an operational rail (not a risk control). Confirm who bears FX and chain-fee risk, and document reconciliation steps.
Finally, define an action: approve, approve with limits, or request more information. Make sure the decision is reproducible and auditable.