2023, Vol. 10, No. 1. - go to content...

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DOI: 10.15862/57ECOR123 (https://doi.org/10.15862/57ECOR123)

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Cherkasova A.D. Peculiarities of carrying out contractual reliability inspections at the enterprise of the wood processing industry. Russian journal of resources, conservation and recycling. 2023; 10(1). Available at: https://resources.today/PDF/57ECOR123.pdf (in Russian). DOI: 10.15862/57ECOR123

Peculiarities of carrying out contractual reliability inspections at the enterprise of the wood processing industry

Cherkasova Anastasia Dmitrievna
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: a.cherkasova2014@yandex.ru

Academic adviser: Rogulin Yuriy Pavlovich
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: URogulin@fa.ru

Abstract. In this article, the author analyzes the system for checking the reliability of business partners used at the timber processing company SVEZA Kostroma. The author found that the risk of unreliability of a business partner in this business is high due to a complex chain of processes, from harvesting to wood processing. That is why the author strongly recommends conducting a due diligence check of business partners in order to reduce risks and ensure the reliability of interaction between the company and its partners. The author believes that the elimination of shortcomings in the system for checking the reliability of business partners will help SVEZA Kostroma to make more profitable transactions, ensure the timely fulfillment of obligations by counterparties, and also improve the quality of products. Moreover, due diligence of business partners can increase demand for the company’s products. The article also discusses the advantages and disadvantages of creating a control and audit department at the SVEZA Kostroma enterprise. The author emphasizes that the creation of such a department can help the company to control the quality of products and ensure their compliance with standards, as well as increase the trust of partners and customers. Analyzing the internal environment of the enterprise, the author comes to the conclusion that when using only its own personnel in the process of conducting the due diligence procedure, the number of partner checks will increase by about 2 times per year. As a result, according to the author, the number of transactions with business partners will increase due to the accelerated procedure (not every counterparty will be happy with long checks with incessant requests for documents and may himself refuse the transaction). Thus, a comprehensive due diligence of business partners and the creation of a control and audit department are important steps to ensure the reliability and sustainability of SVEZA Kostroma’s business.

Keywords: due diligence; counterparty due diligence; counterparties; timber processing industry; audit; business entity; economic security

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