Due Diligence Risk Factors
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May 15, 2023AV Service is Not Responding
May 20, 2023Due diligence risk factors are a part of an organization or project that need to be evaluated to determine if there are risks to the goals and goals. These include the financial, legal operational and IT elements of a business.
A typical example of due diligence is customer due diligence (CDD). This is the process of confirming a person’s identity and assessing their degree of risk to ensure the compliance of anti-money laundering laws and preventing financing of terrorism laws. CDD typically happens before the new customer is enrolled and continues to be conducted at regular intervals throughout their relationship with the firm. It is crucial to know how often each risk category should be reviewed.
It would be untrue and disproportionate to expect an organisation to conduct CDD on all the countries, projects or business associates that it has around the world and especially when some of them have the lowest risk of corruption. A company should therefore make use of its GIACC programme to categorize and identify countries or projects, as well as business partners according to the likelihood of them being corrupt and with due diligence performed on those considered to have more than a moderate risk.
IT due diligence is a different illustration of due diligence. This involves an evaluation of the target company’s IT infrastructure, cybersecurity, and data management practices. This is a way to identify any potential risks or costs that could arise from the acquisition of a firm, such as software or hardware that might need to be replaced. It also can identify any IT system vulnerabilities that could expose sensitive information.
