Wolters Kluwer launches due diligence resource checklist for corporate counsel to mitigate financial risk

Rhea-AI Summary

On March 17, 2023, Wolters Kluwer Legal & Regulatory U.S. launched a Due Diligence Checklist designed to help corporate legal departments assess the stability of financial institutions amid recent bank failures like Silicon Valley Bank. This resource offers proactive steps to evaluate a bank's health, including reviewing investments, ensuring participation in stress tests, and regularly monitoring for changes. The checklist aims to empower corporate and legal counsels to make informed decisions about bank partnerships to mitigate financial risks. Learn more here.

Positive

• Launch of Due Diligence Checklist to improve bank evaluation processes.
• Resource aims to mitigate financial risks for corporate legal departments.
• Checklist includes essential steps for assessing bank stability.

Negative

• The need for such a checklist indicates potential systemic issues in banking stability.

Considering the recent Silicon Valley Bank and Signature Bank collapse, the Due Diligence Checklist on VitalLaw^® outlines proactive steps on how to assess a bank properly

NEW YORK, March 17, 2023 /PRNewswire/ -- Wolters Kluwer Legal & Regulatory U.S. today announced a particularly pertinent new resource for corporate legal departments, which comprehensively outlines what to look for and what to ask about when conducting one's due diligence when working with a bank. Available on VitalLaw^® and VitalLaw^® for Corporate Counsel, the Due Diligence Checklist identifies proactive steps to gauge if a bank is sound and whether it is stable enough to merit one's initial business or continued business.

The recent wave of bank failures in the United States has put a heightened and valid focus on the security and stability of financial institutions. Even with protections in place, a bank's failure is disruptive to individual and corporate customers, including corporate counsel, causing delays and confusion regarding access to funds. Due diligence requires the assessment of a bank by a customer, and of a customer by a bank, in advance of becoming a customer and continuously after becoming a customer.

"Given the circumstances that gave rise to the failure of Silicon Valley Bank and Signature Bank, it has become increasingly necessary for corporate and legal counsels to fully investigate a bank's interest rate and liquidity risks before committing funds to that bank," said John Pachkowski, Senior Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.

Wolters Kluwer's Due Diligence Checklist covers the following areas on how to review all aspects of a bank effectively:

• Assess the overall health of your bank
• Review your bank's investments
• Ensure your bank participates in stress tests
• Protect your deposits beyond Federal Deposit Insurance Corporation (FDIC) depositor protection
• Regularly monitor your bank for material changes

VitalLaw^® is Wolters Kluwer's intuitive research platform that provides corporate counsel and legal professionals with comprehensive support and world-class analysis in key practice areas. With more than 25,000 pieces of useful content and data visualization tools, VitalLaw^® provides customers with faster answers and deeper insights. As the legal space continues to develop daily, the solution also gives customers access to consistent and current updates for laws and regulations.

To learn more about the Due Diligence Checklist, visit: https://business.cch.com/BFLD/WK-DueDiligenceChecklist-ProactiveStepsforAvoidingaBankFailure.pdf

About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in professional information, software solutions, and services for the healthcare, tax and accounting, financial and corporate compliance, legal and regulatory, and corporate performance and ESG sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

Wolters Kluwer reported 2022 annual revenues of €5.5 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 20,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Twitter, Facebook, and YouTube.     

MEDIA CONTACT:
Linda Gharib
Director, Brand & Communications
Wolters Kluwer Legal & Regulatory U.S.
Tel: +1 (646) 887-7962
Email: lrusmedia@wolterskluwer.com 

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SOURCE Wolters Kluwer Legal & Regulatory U.S.

FAQ

What is the purpose of the Due Diligence Checklist launched by Wolters Kluwer?

The checklist aims to help corporate legal departments assess the stability of banks and mitigate financial risks.

When was the Due Diligence Checklist for banks announced?

The checklist was announced on March 17, 2023.

How can corporate counsel use the Due Diligence Checklist?

Corporate counsel can use the checklist to evaluate a bank's health and make informed decisions about banking partnerships.

What are some key areas covered in the Due Diligence Checklist?

Key areas include assessing bank health, reviewing investments, and ensuring participation in stress tests.

What recent events prompted the launch of the Due Diligence Checklist?

The checklist was launched in response to the recent collapses of Silicon Valley Bank and Signature Bank.

Where can I find the Due Diligence Checklist?

The checklist is available for download at the Wolters Kluwer website or directly through this link: https://business.cch.com/BFLD/WK-DueDiligenceChecklist-ProactiveStepsforAvoidingaBankFailure.pdf.