In many industries, compliance is still considered as a cost-center without direct benefits for the organization or to its placement in the global supply chain with respect to its competitors.
Why is due diligence required?
1) Without a structured approach to data and due diligence, companies are dealing with repetition and unnecessary duplication of efforts and processes.
These inefficiencies are increasing operational teams' reliance on legal and compliance for guidance, further increasing turnaround time by causing a slowdown in the functioning of business operations.
2) Implementation of improper data solutions and usage of platforms that are often not suitable for a specific industry can lead to low data quality
This in turn produces inadequate reporting and inconsistent screening results, resulting in high volumes of false positives and an increased likelihood of failure to mitigate the risk of false negatives.
3) To seek incentives for changes in the operating environment.
It is no longer necessary to look further than the costs and inherent damages that can arise by improperly addressing risk, ranging from high costs in fines to the necessity to remediate operations, whilst exposing the company to reputational damage and potential loss of business.
Organizations incentivized by performing proper due diligence inherently benefit from:
Operational transparency and efficiency;
Better knowledge of customers and their customers’ customers;
Proper oversight and understanding of the supply chain affecting the business;
Improvements in the operating environment.
To learn more about MCaaS' services, access the below articles: