Do you know who your business partners are? Many industries are now focusing on the prevention of problems before they arise. A great step to achieving this assurance is undertaking ‘Know Your Customer’ and ‘Know Your Supplier’ programmes. Understanding the backgrounds of companies, their affiliates, the principals, and the beneficial owners will give you valuable insight to assist in your decision making process. Often, companies concentrate wholly on an entry strategy without considering what an exit strategy might also look like. Why would you not want to know who you are doing business with?
With a systematic programme you can reduce the risks to your company and at the same time increase your credibility and standing with regulators in whichever markets you operate. Due diligence does not only apply to companies, with whom you intend to do business.
Do you undertake pre-employment screening? Your employees have unique access to your business information, physical assets, facilities and intellectual property. In one case investigated by one of our directors, an interim finance manager diverted more than £1 million to a bank account of his choice. A check of his CV would have revealed that one of his past employment periods was false. He had in fact been serving a four year sentence for fraud. It makes perfect sense to ensure that the prospective employee to whom you are about to offer a position is who he or she says she is and that their CV is a true account of their background.