Complex business processes involving hundreds of outside partners, thousands of discrete events to be recorded and tracked, and millions of funds are great candidates for digital transformation Blockchain. Managing a portfolio of judicial bonds and deposits, also known as judicial guarantees, is one such process.
In some countries, jurisdictions, and court systems, companies must be sued to provide a judicial guarantee in the form of an insurance-based guarantee or, in some cases, a cash deposit. Operation a Companies of any size means to be sued. It is a fact of corporate life in everyone Industry. The larger the company, the more legal action will be taken against the company and the more complex the judicial guarantee process becomes.
While there are many types of judicial debt securities, the intent is usually to protect or safeguard the plaintiff from default by the defendant in a legal dispute, whether it is civil, tax, or industrial action that the court costs are covered. Management challenges for very large companies include tracking the changing status of litigation to determine when deposits are collectible or bonds can be withdrawn, coordinating multiple internal departments and systems, communicating with multiple law firms, and borrowing from numerous acquire insurance Companies.
Proven benefits of a blockchain-based solution for managing bonds and deposits
Standardization and digitization of the entire process and use of a blockchain-based solution For the administration of legal guarantees of all kinds and the connection of all participating departments and partners:
- Replace manual processes and spreadsheets with consolidated and fully digitized tracking of legal actions and outstanding legal guarantees
- Accelerate the recovery of judicial deposits once complaints are resolved
- Increase efficiency by automating many of the tasks associated with requesting bonds or securing deposits
- Increase security with encryption and tamper-proof distributed ledger technology
- Avoid disputes and simplify communication with a transparent process that can be reviewed by any authorized participant
- Scales to hundreds of legal actions and supply chain participants including law firms, banks and insurance companies
Blockchain to manage and control guarantees and deposits for judicial guarantees: how it works
We have a replicable solution based on that Blockchain platform This enables a company to manage, mandate, and control judicial guarantees issued through its network of law firms, banks, and insurance companies. Typically, a company works with Blockchain Services to adapt this solution to its processes and requirements.
The solution has a web interface for users and digital workflows for automating and controlling business processes. Blockchain The technology provides encryption to improve security and immutable data storage to track and control bonds and cash guarantees. Authorized participants all see the same information that is stored in the blockchain.
The mining company is streamlining management and bringing back judicial deposits
Brazilian mining giant Vale S.A. used several non-integrated applications and spreadsheets to manage refundable legal deposits, bonds and insurance guarantees worth over $ 3 billion. The complex process involved multiple internal litigation and finance departments, litigation handled by more than 150 law firms, and guarantees from major banks and insurance companies. The complexity and lack of integration have resulted in delays in recovering funds that the company is entitled to after a favorable settlement of legal proceedings.
The solution for managing and restoring judicial guarantees is a high security network based on the blockchain platform that integrates multiple internal systems along with the supplier ecosystem. It uses smart contracts to request, issue and track warranties and monitor the status of related litigation in a single distributed ledger database. The solution also uses Watson’s natural language understanding to review legal updates and identify warranties that may be eligible for recovery. The scalable blockchain solution, which was implemented in nine months, helped Vale recover outstanding legal deposits of $ 35 million using a process that is fast, efficient and trustworthy.
Legal guarantee management transformation: Build on our experience and assets
The justice guarantee management solution is both replicable and expandable. Since we have already created it for existing customers, we can quickly recreate the solution for other companies and their partners. Assets such as rules for insurance-based bond terms, dictionaries for understanding natural language, codified workflows, templates for user interfaces and APIs for connecting to partner systems can be customized for your specific business relationships and potential participants.
By leveraging an existing customizable solution and the expertise of Blockchain servicesCompanies can move from design to pilot in just three months. After applying the pilot learning, you can start scaling up by adding new participants to the network.
The solution itself is based on the blockchain platform, the commercial distribution of open source by the Linux Foundation Hyperledger fabric. The blockchain platform is cloud-independent and can therefore be run in the cloud of your choice or locally. Each party in the blockchain network can manage their data in the IT infrastructure or a third-party cloud provider of their choice. The platform is GDPR compliant and therefore ready to support global business relationships. Blockchain Services can help you replicate a similar blockchain-based digital justice guarantees solution for your business.
These Use case Following the history of judicial guarantees management, more examples of how blockchain services are used in various industries to solve real-world problems will follow. Be sure to read our latest articles about Trade finance, Responsible sourcing, Financial netting, Invoice reconciliation and Digital ticketing and upcoming articles or schedule a free one-to-one lesson consultation to find out how you can benefit from this solution.
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