The following examples are provided for illustration purposes only. Details have been changed to protect confidentiality.
A client considering acquisition of an established sales team (covering a new geographic market) wanted to form a view on legacy relationship risk in the target portfolio.
A client seeking commercial funding for a strategic project was concerned about legitimacy of an individual's credentials, particularly as to whether he was an official agent of a European investment fund.
As part of pre-employment screening the client sought independent validation and challenge, of information presented by prospective employees.
A gap or anomaly in a person's CV could be a red-flag, indicating a concealment or lack of transparency, about career experience, professional qualifications or educational standing.
The Senior Managers and Certification Regime requires regulated firms to take reasonable care to ensure, that employees who perform a ‘significant harm function’ are certified (by the firm), as fit and proper to do so.
Pre-employment check, supply chain review, due diligence and audit, all help to assess risk associated with potential (or existing) employees, suppliers and vendors, agents and intermediaries, transactions (and parties associated with them).
Risk assessment could identify a material red-flag or risk which, if the relationship is to continue, may require risk-mitigation and monitoring to be implemented, to inform senior management risk-appetite.
A combination of generic and targeted research may be appropriate, depending on the overall objective (i.e. define the rational, purpose and intended use of due diligence findings).
Findings of independent research or assessment activity can inform internal risk-awareness and appetite (e.g. whether to progress a new (or maintain an existing) business relationship).
Research findings are influenced by the availability of accurate and reliable information sources - Important considerations when determining research scope.