Industry and Competitive Analysis: How to Identify Hidden Business Risks

Valuing a counterparty without taking into account its industry is a common cause of hidden losses and additional charges from the Federal Tax Service. To promptly detect a partner's pre-bankruptcy status or anomalies in their accounting, conducting a routine audit of publicly available registries is no longer sufficient.

We explain how automated industry analysis helps you compare your company's performance against competitors in just two minutes and protect your business from regulatory risks.

Industry analysis is essential for businesses to minimize risks when selecting partners and to gain a deep understanding of the internal processes of a specific niche.

Professional industry analysis helps commercial departments and top management to:

Today, counterparty verification is not limited to obtaining an extract from the Unified State Register of Legal Entities and reviewing the arbitration proceedings. Modern compliance includes an assessment of financial status, legal activity, legal proceedings, and signs of bankruptcy.

It is important to remember that analyzing a company without taking into account its industry often leads to erroneous conclusions. Without comparing an organization's performance with industry averages, it is impossible to objectively assess its effectiveness and identify hidden risks.

The retail chain checks the packaging supplier. According to the standard outline, everything is fine: assets are in the positive, there are no legal proceedings, net profit has increased by 10%. The deal is approved.

But the analysts failed to take into account the context: due to the departure of imported brands, the entire packaging industry grew by an average of 70% over the year. Against the general backdrop, a supplier's 10% growth is not a success, but a systemic regression and market loss. Four months later, due to internal problems, this partner disrupts supplies. Industry compliance would have highlighted this lag at the tender stage.

To get industry average markers manually, an employee needs to do a huge amount of technical work. You need to find companies yourself by OKVED, download their reports, calculate average values, and clear the database of shell companies and monopolists who distort statistics. This delays the approval of transactions, paralyzes the work of the commercial department and increases the risk of calculation errors. The solution is automation.

To free businesses from routine tasks and protect against hidden threats, the data matching process in Globas is automated. Tools transform massive amounts of information into clear risk indicators in seconds.

Tax authorities use industry average indicators as a trigger for scheduling audits. If a company's performance deviates from the regional and OKVED averages, this automatically attracts the attention of inspectors.

Identification of tax risks
Comparing an organization's tax burden with industry averages helps identify hidden tax risks and potential claims from the Federal Tax Service. Low counterparty's tax burden poses a risk that the transaction will be recognized as an unjustified tax benefit.

Salary level analysis
Comparing salary levels with industry indicators allows us to assess the likelihood of tax audits and other regulatory risks. If the partner pays employees less than the market average, the Federal Tax Service may suspect the use of gray schemes.

The simultaneous use of industry and competitive analysis tools allows a company to reach the level of predictive analytics. Globas provides a comprehensive approach that helps you more deeply evaluate your counterparties, predict their stability, and ultimately make more informed management and commercial decisions.