Partnering with an outside research provider for compliance due diligence ensures your contacts are trustworthy, freeing your team to focus on business growth. Failing to maintain appropriate regulatory compliance can have a serious impact on your company’s success – fines, reputational damage, and shareholder backlash are just some of the potential negative consequences that can await noncompliant companies. Some regulations require investigative background research, also known as “due diligence,” to be compliant. Many companies do not have the internal resources or expertise required to conduct effective due diligence research, making a third-party due diligence research partner essential to the task. These firms’ expertise conducting research and providing research-related services can satisfy your company’s unmet needs without the expense of hiring, training, and paying new employees.
Selecting the right due diligence research partner is important, however, so keep the following points in mind when reviewing potential vendors:
- Business Record – Is the research partner an established research services provider? Can it provide details of its history conducting due diligence to meet regulatory requirements on behalf of clients? Volunteering to be a research partner’s first compliance due diligence client could expose your business to unnecessary risks, so err on the side of caution and select an experienced vendor if possible.
- Internal Resources – Who will the research partner assign to work on your contract(s), and will those individuals work as assigned resources? Does the due diligence research partner have the capability to expand its workforce to handle short-term workflow increases, and how are these workers trained and monitored? Are its subscription databases able to meet your specific needs, and, if not, how will the vendor close the gap(s)? Human researchers cannot be effective without the right research tools, so pay attention to both aspects of a vendor’s internal resource options to avoid any surprises once research begins.
- Technology Options – Does the research partner offer a networking software solution, an app, or a non-traditional search platform? Many vendors will provide research services, but finding a due diligence research partner with technology capabilities offers your company a range of new opportunities to internally view, analyze, distribute, and modify research findings.
- Research Process – What is the step-by-step process the research partner uses to conduct compliance due diligence? How does the vendor maintain quality control over time? Are there any protocols to store and destroy sensitive information? Can the vendor handle ad-hoc requests, and, if so, what processes would be involved in completing that work?
Effective due diligence requires a repeatable process to ensure research is sufficiently comprehensive to meet regulatory requirements for each target. Cipher’s expert analysts provide investigative due diligence and corporate risk mitigation services that uncover potential red flags and provide companies with the best information available to aid in their decision-making process. We offer a full suite of due diligence services to support client challenges related to channel checks, reputational due diligence, beneficial ownership analysis, compliance due diligence and overseas partner vetting. We have worked with over 215 clients to complete more than 425 engagements in 23 countries in industries such as manufacturing, consumer goods, pharmaceutical and life sciences, financial services and energy and utilities. Cipher specializes in assisting clients to make better business decisions by leveraging our expertise in primary source intelligence and strategic analysis to uncover hidden pivotal knowledge crucial to making smarter, better-informed corporate choices. Clients make the decisions, but our experienced team of primary researchers, analysts, and investigators ensures these decisions are based on detailed foreknowledge of all relevant contributing factors, as well as a thorough understanding of opportunities and risks.