What is adverse media screening?

Adverse media screening is actively searching for adverse information about potential business partners.

What’s the difference between adverse media screening and adverse media monitoring?

Adverse media screening checks for adverse information before onboarding, while adverse media monitoring continuously tracks third-party risks post-onboarding. Both are essential for comprehensive risk management.

Why do organizations conduct adverse media checks?

Organizations screen for adverse media to identify risks across cybersecurity, environmental impact, social responsibility, financial health, and regulatory compliance.

What are adverse media examples?

Some adverse media examples companies tend to look for before onboarding an entity are:

• Supply Chain Risk: Disruptions or unethical practices within the supply chain.
• Operational Risk: Disruptions from third-party failures, like a data breach impacting operations.
• Reputational Risk: Damage to reputation due to third-party misconduct.
• Information Security Risk: Data breaches caused by vulnerabilities in third-party systems.
• Financial Risk: Financial instability or fraud by third-party entities.
• Compliance Risk: Non-compliance with regulations by a third party.
• Legal Risk: Legal disputes or regulatory actions involving third parties.

How can technology help enhance adverse media screening tools?

 AI and NLP technologies empower organizations to analyze global data, allowing for proactive risk management in almost real-time.

What other sources can be used for a complete risk assessment of a third party?

Next to adverse media, companies can screen Chamber of Commerce data, Sanctions lists, PEP data, SOE data, Blacklists, Consumer Reviews, PDF documents, and Alternative Data like financial statements before onboarding a third party.

Which regulations mandate adverse media checks?

Regulations like AML, KYC, Sanctions, and Data Protection laws require or recommend adverse media screening to manage associated risks.