.png)
Key insights:
- Improved counterparty transparency
- Stronger due diligence by combining credit risk analysis with KYC intelligence
- Reduced exposure to fraud, sanctions risk, and counterparty failure
- Vital human intelligence that AI cannot replace in critical decisions
A twenty-year partnership with Infospectrum
We spoke to the Global Head of Compliance, at an international bunker fuel and shipping company, about their experience with Counterparty Risk.
“My objective is to address key risk challenges across the business and to ensure consistent standards in how these risks are approached and managed across the Group.”
Having purchased their first Infospectrum report nearly twenty years ago, it has consistently been part of their professional toolkit, "it has always been with me, no matter what company I worked for.” This collaboration has deepened across the decades, “over time, I became part of a trusted professional network that both relies on Infospectrum services and contributes, directly or indirectly, to maintaining the high quality of its data. Looking back, I believe Infospectrum not only created a highly successful business model within this niche market but also significantly contributed to improving transparency and commercial safety across the shipping industry.”
“A must-have service.”
Asked to describe the potential impact of not having the service, they explained “we would know less about our counterparties. We would make more mistakes and poor judgments and be exposed to fraud and losses. It's that simple.”
“It has helped us to avoid lots of problems that we could have potentially faced.”
Over time, they described how the Counterparty Risk reports have become “a standard that is incorporated into the risk management frameworks of many major companies.” This made the decision to partner with Infospectrum “both natural and practical,” and forms a critical layer of due diligence that strengthens both compliance and commercial decision-making.
"It’s a reputable business that dominates a small niche of credit risk and KYC and its positive impact on the industry is substantial.”
Counterparty Risk in action
Counterparty Risk has “played a significant role,” by providing unique insights into complex and often obscured ownership structures.
“The market has been very volatile since the 2008 global financial crisis. It's been up and down and lots of companies have filed for bankruptcy. Many companies aren’t publicly listed and don’t disclose financials, but Infospectrum gathers this information through direct engagement, producing credible reports that allow businesses to proceed safely, even if a company has low liquidity.”
Describing a real-life problem, the customer explained that when these companies are struggling with liquidity, and have low cash flows, it is difficult to know the amount of assets and liabilities that they have and so it becomes impossible to say where the company stands. “Most of the companies are not listed companies, so they don't have to report their financials.” However, with Counterparty Risk, “if a report is not updated you can request a new one, and an analyst will call that company to find that financial information.”
“They are an inseparable part of due diligence for many major companies.”
On the KYC side, the report is described as going beyond document limits by verifying ownership and control through market intelligence, “this is invaluable for detecting risks that aren’t obvious on paper, such as entities trying to evade sanctions.” In the customer’s experience, most databases will identify information on the ownership and shareholders, up to the UBO until they reach the limit. “The limit for them is the availability of documentary proof. For Infospectrum, that's not a limit. They go beyond that, and when they hear from other market players or from other sources of information that there might be a particular person or group of people behind that business, they put it in the report. That represents a huge value.” The customer describes a very real scenario of how someone may try to evade sanctions by opening multiple companies that look fine on paper, “we need that deep intelligence, beyond the paper, that suggests that that business might be risky.”
“If you know the financial position of your counterparty, you will make better decisions for yourself, for your business.”
AI and the human factor: What does the future look like?
“Quality of data is extremely important, as well as how you transfer that data.” These two components can slow down processes, “we want it to be as simple as possible, yes or no, green light or red light.” Of course, the complexity around regulations doesn't make it easy, and so companies are turning to AI solutions. Despite this, if you are working with AI only, there are limitations, “the human element is crucial. Speaking directly to a knowledgeable analyst provides insights you can’t get from purely digital sources.”
“Human insight remains irreplaceable for critical decision-making.”
“In my personal view, in a world where technology increasingly takes over complex analytical tasks, this type of human-produced and irreplaceable intelligence will only grow in value. The human network behind the data is inseparable from the service. This data is created and maintained in a way that remains difficult to challenge even with modern technology. It reflects the work of analysts whose expertise, professional network, and accumulated trust have been built over decades. Infospectrum has developed a system of data collection that is fundamentally based on human expertise rather than purely technological solutions, making it extremely difficult to replicate.”
It is this “trusted network” of expertise that is so invaluable. “Humans will have a very strong preference for talking to other humans and data is uniquely combined with people and it's inseparable. In a business model where personalities matter, it is extremely difficult to build a trusted network of people. It takes time. Even if you bring brilliant people together, even if they already have strong networks, they still need to be able to work as one. I think this is very important. The model is unique, and hardly replicable anywhere else. I'm very inspired, it deserves the highest recognition.”
Asked how they would describe the service overall, our customer is clear:
“An exceptional product that, in my view, has no real alternative in counterparty credit risk management within shipping.”
Learn more about how Counterparty Risk, by Infospectrum, can support your KYC and risk assessment.
.jpg)
