Due diligence elements are the main issues that go into the risk assessment process https://getvdrtips.net/a-comprehensive-guide-to-selecting-the-perfect-boardroom-software/ when conducting a due diligence assessment. A wide variety of stakeholders can benefit from this process, including companies looking to examine their potential partner prior to a merger or acquisition; investors looking for an extensive risk assessment prior investing; and employees assessing the potential candidates for employment.

Due diligence can involve a variety of checks, depending on the purpose and scope of the procedure. Typical checks include identity verification, screening against lists of sanctions and criminal watchlists. They also include an investigation into the sources of funds. Additionally an approach based on risk must be used to determine if enhanced due diligence (EDD) measures must be applied. This is because clients who are at an increased risk of laundering or terrorist financing need additional measures, for example, an increased surveillance of transactions and the collection of more data.

EDD can include assessing beneficial ownership of corporate clients to minimize the risk associated with concealed ownership. This could involve examining the structure of the company, and identifying any connections with public officials that could result in bribery. In addition, it is vital that EDD includes a regular review of international sanctions lists to ensure compliance with the regulations.

A well-run due diligence process will provide a summary of the important findings to those who don’t have the time to read the full report. The summary should be brief and include the type of due diligence that was carried out (e.g. an extensive risk analysis before investing in a company) as well as the rationale behind the due diligence, as well as any important findings.