Thứ Ba, Tháng Năm 30, 2023
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HomeChưa phân loạiDue Diligence Risk Factors

Due Diligence Risk Factors

Due diligence risk factors are areas of an organization or project that must be evaluated to determine if there are risk to the objectives and goals. These include the legal, financial operational and IT aspects of a business.

Customer due diligence (CDD) is a great example of due diligence. The verification of a person’s identity and assessing their risk level is part of this procedure. It aids in ensuring the compliance with anti-money laundering and counter financing of terrorism laws. CDD is usually performed before an individual is hired and then regularly throughout their relationship with the company. It’s important to understand the different risk categories and when each should be examined.

It’s unreasonable and untrue to expect an organisation to conduct CDD on every country, project, or business associates it has around the globe, especially if some of them may only pose the risk of corruption at a minimal level. A company should utilize its GIACC program to categorise and identify countries and projects as well as business partners based on the likelihood they’ll be the source of corrupt activity. Due diligence should be conducted on those that are deemed to be at risk read this. higher risk.

IT due diligence is another instance of due diligence. This entails an analysis of the target company’s IT infrastructure security, cybersecurity, and data management practices. This can help identify risks or expenses related to the purchase of a target company, for example, replacing hardware or software. This can also highlight any weaknesses in the IT system that could expose sensitive or sensitive information.



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