An audit of sanctions risks is the process of identifying factors that could lead to economic and reputational losses associated with sanctions. Such an audit makes it possible to assess possible risks that could lead to the imposition of sanctions against a company or its counterparties.
In the course of a sanctions risk audit, sanctions lists are analyzed and risks associated with the company's activities are assessed. This makes it possible to identify "bottlenecks" in the company's activities that could lead to the application of sanctions, as well as to assess the likelihood of risks of cooperation with specific counterparties.
Based on the results of the audit, a protection system against sanctions risks is developed, which includes measures to reduce risks and control cooperation with counterparties. These can be measures to exchange information with counterparties and monitor their activities, as well as the development of alternative strategies for working in case of sanctions against the company.
The audit of sanctions risks is an important tool for managing the risks associated with sanctions and allows the company to strengthen its market position, reduce the risks of economic and reputational losses and protect its interests.