The due diligence questionnaire (DDQ) can be considered to be a document that contains all the information about your business that investors may want to know. It should cover your company’s strengths and provide information on factors such as its current financial status, losses and partnerships in a positive light. Many companies make the mistake of overlooking the importance of the DDQ. A poorly compiled DDQ that lacks information and is full of unstructured data may leave a poor impression on investors, causing you to lose potential investors and customers. Because of the rise in financial crime and fraudulent activity, and instability in the market, investors are looking for more transparency. A well-prepared DDQ with all the right information in the proper manner and format would help investors analyse your business institution with ease.
Complications with manual DDQs
Responding effectively to a DDQ requires a significant amount of data from the different areas of the business. It will likely be cumbersome to access all this data, let alone use the data to compile reports to be included in response to the DDQ. Doing this manually could, therefore, be almost impossible for businesses operating on a large scale.
DDQ automation – a modern solution
DDQ automation software provides a modern solution for preparing DDQs with ease and to perfection. It makes use of sophisticated artificial intelligence, machine learning, and deep-learning algorithms for quicker extraction of data and better results. Let’s look at how DDQ automation could boost your business.
Benefits of DDQ automation
Seamless data extraction
Extracting the data required for preparing a response to a DDQ is cumbersome, as the data may be stored in multiple databases. DDQ automation software uses complex algorithms to drive the extraction process. It can, therefore, fetch information from multiple databases, and the dynamic content field enables you to automatically pull information from third-party software such as SQL databases and Excel spreadsheets as well.
Finding and extracting data from a company’s large databases can also be time-consuming. DDQ software uses artificial intelligence and machine learning algorithms that can fetch the required information in a matter of seconds. This can help you ramp up the response preparation process, freeing up time to focus on other crucial business decisions and operations.
Preparing a response to a DDQ requires a significant amount of data from the different departments of the business. Manual preparation requires extracting this data from one department at a time. DDQ automation, however, enables officials from multiple departments to work on the response simultaneously, saving a substantial amount of time in the process.
While gathering information from multiple departments, there is a probability that some of it may overlap, causing redundancy. Data redundancy can make a bad impression on investors. DDQ automation software has the ability to find and eliminate such redundancy without the need for human intervention.
DDQ automation software contains a number of pre-designed, eye-catching templates that can be used for the response document. This saves time spent on designing templates. The templates are customisable and allow you to add features without having to work on them from scratch.
Saves time of senior professionals
Responding to DDQs takes up a significant amount of senior professionals’ time that could otherwise be spent on making crucial business decisions and on core operations. With DDQ automation software, even junior-level employees could access the information necessary to respond to a number of questions.
DDQ automation software could, therefore, help you ramp up the process, using accurate data and the proper format.