Business Intelligence

“Praemonitus praemunitus”, or translated as “To be forewarned is to be forearmed”.

Our Business Intelligence service offering has been designed to allow our customers to minimise the risks associated with a variety of commercial transactions. By being forewarned and forearmed, our clients can conduct business with the peace of mind that is associated with being aware of the environment in which the business is operating.

Due Diligence - Why Intelligence?

Regulator, shareholder and public scrutiny is greater than ever. The failure of businesses to undertake adequate business intelligence activities (due diligence) when entering into any deal or contract, represents a major commercial risk and could lead to irreparable reputational damage, should the deal or contract encounter any significant adverse issues.

 Due diligence is used to investigate and evaluate a business opportunity. This opportunity may be in the form of a merger or acquisition; the appointment of a channel partner; or the creation of a joint-venture vehicle to capture an opportunity in an emerging market. .

 The need to undertake comprehensive business intelligence is especially the case in jurisdictions where there is a lack of familiarity, and where there is a need for organisations to know who they are really dealing with. Some lesser developed countries have unsophisticated corporate registers where records are incomplete or inaccurately filed, and where some business practices are viewed as unacceptable to the more developed nations and/or fall foul of corruption or bribery legislation, such as:

     The Foreign Corrupt Practices Act (FCPA), 
          The UK Bribery Act
          The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

However corruption and opaque company structures, (where the ownership is obscured by offshore registered, or proxy, shareholders and the key executives are hidden through front directors or puppet leaders), are not restricted to less developed nations. These issues, among a host of others, are the reasons why our clients come to RISQ to establish the backgrounds of companies and their key executives 

RISQ – Our approach

Our Business Intelligence team is vastly experienced. RISQ is able to combine its knowledge of the Asia Pacific region (specifically the issues and threats to foreign businesses) with innovative enquiries, extensive research and tested methodologies to provide clients with accurate intelligence in order to bring a greater level of confidence to them in completing a deal or to minimise any exposure to hidden liabilities.  

RISQ has achieved its edge in business intelligence through partnering with its clients to thoroughly understand their issues and identify their key objectives. Our Business Intelligence team conducts preliminary research and provides an assessment of the risks facing clients prior to embarking on the project in question – whether it be an acquisition, appointment of a channel partner, or awarding a contract to a supplier. This initial “value add” allows our clients to understand cultures, geographies and business environments of which they previously may have had less knowledge and therefore can focus their intelligence gathering in the necessary areas, rather than in a prescriptive, predetermined, or off-the-shelf, process. 

RISQ relies on its network of contacts and associates to obtain relevant and timely information, as well as the resourcefulness of its consultants and their investigation techniques. Typically, the following enquiries, as set out below, are conducted into the background of the company and/or individuals concerned:

•           Establish whether the company or individual is properly registered and licensed, as well as  regulated by the relevant authorities
•           The reputation of the company and/or individuals in the industry, as well as the local   and international community
•           Identify the original source of wealth for the company or individuals 
•           Identify red flags that may be of concern such as litigation, criminal history, corruption, fraud, conflict of interest or other issues that could be detrimental to the client 
•           Identify whether the company and/or individuals are, or have any connections to, politically exposed persons or are linked to organised crime 
•           Global blacklist checks and local registers of disqualification or disbarment

Vendor Due Diligence

Many international companies have implemented Vendor Due Diligence programs to meet the requirements of the FCPA and what would be considered best practice in the engagement and ongoing management of their vendor partners. Given that many vendors have the ability to represent a company in a certain market and/or country – particularly in the case of sales agents; country representatives; or distributors – they have the ability to make your organisation accountable for any breaches of relevant legislations, such as the FCPA or the UK Bribery Act.

RISQ offers a Vendor Due Diligence Service which can undertake the following activities on behalf of our clients:

• Conduct site visits to determine that the addresses held by our client match the physical addresses of the vendor concerned;
• Review vendor policies – such as Codes of Conduct, Bribery Policy etc. – to confirm they meet the standard expected of our client;
• Undertake background enquiries into the principals behind the vendors to ensure there is no adverse information which may represent a risk to our clients; and
• Review an organisation’s vendor engagement process to ensure it is sufficiently robust to meet the requirements of legislation such as the FCPA and the UK Bribery Act

Corporate Intelligence

Companies are continually looking for ways to maintain a competitive advantage over their competitors. One way of achieving this is through ongoing monitoring of the activities of these competitors. It is essential that this monitoring is undertaken lawfully, ethically and within the law.

RISQ has the ability to gather corporate intelligence designed to keep our clients up to date with the activities of their competitors. Threatened industrial action; client dissatisfaction; problems with products are all issues which are of relevance to our clients. Through our comprehensive network of contacts and resources around the globe, RISQ is able to obtain information which keeps our clients informed and up to date with developments which may impact their business.

Pre Transaction

Prior to entering into any major transaction – such as an acquisition, merger or joint venture – it is accepted best practice to conduct due diligence on the party/s to that transaction. Traditionally, this due diligence falls into 3 categories:

1.                     Financial – do the numbers add up, are they true and correct
2.                     Operational – does the machinery work, is the factory fit for purpose
3.                     Legal – are patents registered, is the company subject of litigation

RISQ provides another arm to the due diligence process – reputational or enhanced due diligence. It is important for organisations to understand who they are getting into business with. Our researchers undertake background enquiries into principals and directors to identify any adverse information that can impact a pending transaction. This can include having a history of “phoenix companies”; poor relationships with suppliers/customers; and a bad industry reputation. In these types of instances, forewarned is forearmed.