5 ways Global due diligence can prevent fraud in your contracts

5 ways Global due diligence can prevent fraud in your contracts

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All parties sin a commercial transaction should be very conscious when it comes to fraud and how to prevent it using global due diligence In most cases the parties involved in any international business negotiate with may not even understand the liability they pose.

What is fraud?

In the business world, this is deceiving another party intentionally-this criminal offense under common law as well as a civil violation under civil law.

Most international company claim of transparency in their dealing, on the surface, may seem safe, but failing to fully analyses and global due diligence investigations the party you are entering into a contract with can itself be an invitation for fraud.

It has been started that that commercial fraud often has an international character, and the activity poses a global obstacle trade, which hurts the stability of national economies.

Being vigilant in your due diligence in global business contracts

This is thorough investigation plus audit regarding all matters and person relevant to financial records to a business agreement for both parties involved.  Due diligence international before and during the firm negotiations is the best what to limit and prevent any financial lose, civil tort, company reputation diminishment, litigation and in severe cases bankruptcy resulting from fraud.

In most cases the uncovered risk is so substantial to be the deal breaker; business negotiation is the best way to work through the issues toward a successive international contract.

Remedies to Fraud in International Contracts

New business scam emerges each day, in most cases due diligence you can guard your company or investment for fraudulent international contracts by:

 Acquire expertise

In most cases, you have to hire consultants or lawyers experienced or specialized in both the global trade contracts and market you are trading in. It’s also advisable to invest in accounting and marketing expertise during the Global due diligence investigations bottom lines plus full market potential.

Use letters of credit and secure payments methods

All guideline on payments terms and methods are relatively to a business relationship, with each party still need to take all the precaution to create and secure clearly stated terms.

The letters of credit have banks guarantee owners payments or even partial payments on behalf of buyers according to rigidly defined terms.

If any party doesn’t eliminate the risk of fraud, and a fraudster capitalizes on the opportunity then a false sense of security to inexperienced traders, letters of credit can be used with supporting advice very helpful in mitigating the risk of fraud.

Place requirements clause in contract

All the negotiating element into contract such say product samples or even analysis, the currency, certification and compliance, regulatory documentation, insurance must be indicated to make sure you are dealing with legitimate business parties.

Be aware of currency trends

Using organization such as National Anti-Fraud Network and the US federal bureau of investigation you and check the latest fraud schemes and safeguard precautions.

Lastly, it’s the limiting if technical and physical security access. You need to limit both physical and virtual access to contracting parties to sensitive areas.

International due diligence is the best way to uncover any potential risk ply saving costly and time consuminglitigation process in an international incident.

Check out this post for more informations: http://www.cpca-ppc.ca/top-due-diligence-firms-dominating-market-today/

Who are the Top due diligence firms dominating the market today?

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Why should you hire only the best when it comes to Due Diligence when entertaining an international partnership.
Only select a firm that offers a full suite of investigative solutions to mitigate your corporate risks.

The Business Due Diligence Checklist

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Business Due Diligence Checklist

Technical terms sometimes leave us baffled; International due diligence is one of the most. If you are buying a new business or investing capital in beginners, many experts and professionals suggest you should make a Global due diligence investigations as a prudent measure. To put it in simple terms, due diligence simply a method of investigating the status or background of a business or operation. It involves a range of assignments, legal obligations, investigations and reports.

Below is a checklist to be made proper Global due diligence before you go into a business. You can also check here http://smallbusiness.findlaw.com/starting-a-business/buying-a-business-due-diligence-checklist.html

Business Due Diligence Checklist


Like you would inquire the personal history of an individual, it is important to explore the history of a business. This category includes asking questions about the date of organization, the change in the owners, reasons for alteration in ownership if it has been common, the trading history in terms of sales and cash flow and the downswings and upswings witnessed by a business.For more details read this post.

Employee Details:

Employees detail is commonly requested as part of the International due diligence firms practice during a merger or acquisition. Employee details you can ask to be supplied involve the list of employees, pay, their job roles, benefits, their credentials, incentives, and bonuses. It also includes contracts and agreements signed between the employees and authorities. The employee benefits handbook includes information about sick time, overtime and vacation policy. You should also ask the authorities to inform you on the organization’s retirement policy. A private detective conducting the due diligence procedures on your behalf decide the trustworthiness of employees based on their character and personal history.

Legal Issues:

There are certain legal issues you should be determined about too. Legal issues are comprehensive of civil and criminal cases at the company and personal level. At the company level it includes asking questions such as the company’s inclusion in legal proceedings in the past, pending legal concerns, the company’s stand (convict or victim) and reasons and outcome of the legal issue. Also included in this section are listings of employee arguments. At the personal level, it involves determining accusations against authorities or owners in cases, such as drink driving, use of illegal substances or inviting a prostitute.


Ask the company to provide a list of its current assets. Real estate is the most common asset. Other assets are vehicles, equipment, bonds, shares and foreign currency investments. Assets serve as an indication of wise spending and over spending.

Financial Details:

As an investor or promising costumer of a business, it is your right to request financial information of that operation. You should ask the company to supply financial statements or credit reports for 2 to 4 years. This includes details on accounting methods, accounts receivable, budgets, liabilities, analyst reports, accounts payable, and inventory and tax documentation. You can also ask reports from company auditors.

As a huge company taking over a smaller investment, you can hire one or many private experts to research the business and personal history of the persons included in administration and management of the recent. The Internet has made collecting data about a business or person much easier. However, Global due diligence investigations uncovers those hidden information that prevent useless trouble in future. Due diligence does not promise security against investment downfall but allows you to make a reasonable investment decision.

Managing Risk Through Due Diligence

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Managing Risk Through Due Diligence

One of the great ways to make long-term wealth is by opening a business. While there is overwhelming opportunity in opening a business there is also danger, and another thing to consider would be the Global due diligence.

Risk of Not Doing So versus Risk of Building a Business

It is natural for people to understand that starting a business of any kind includes a high level of danger. In part, this danger comes from federal statistics that 7 out of 10 small or new businesses fail. These censuses however do not tell the real story. They do not disclose why the small businesses fail and they may not be all that precise to begin with. For Risk Management detail you can visit https://www.kreller.com/page/risk-management-solutions

The reality is that today the danger of not opening a business for many people is better than starting one. If you do your International due diligence firms and if you are observant to managing your business you can decrease the risk of breakdown substantially. On the other side, there is much less you can make to lessen the danger that your employer will go out of business or discover he no longer wants your services. There is less you can do to make sure that your company pension will be included at retirement. For more details visit this link.

Managing Risk Through Due Diligence

Risk Viewed as Important

Many people are danger adverse. They are fooled into trusting that all risk is bad and that if they try to open their own business the danger is high. In reality if you make it right the risk for most small beginner’s businesses is controllable and not too much. However, making serious wealth needs some risk. Risk is part of the process. If you really want to risk nothing and as being stated above that is likely impossible, than you can’t expect to create financial security or wealth.

Managing Risk – Global Due Diligence

The way one minimizes or manages the danger involved in opening a new business is through global due diligence. Global due diligence clearly means develop oneself sufficiently to find out what the real risks are and then creating a decision not based on fear of what might be but based on the information of what is.

International due diligence means educating yourself. It means doing research to the field you are pondering entering. It means asking people in the same business, studying trade journals and other announcement with details about the field, making questions in related businesses to learn market conditions and using the internet to widen your research.

Avoiding Analysis by Paralysis

While nobody can tell what level of danger is acceptable to you and it may vary rely upon to many problems you do need to prevent the threat of analysis by paralysis – that is – you will never identify every possible or possible risk and you will never get away all risk. If you come to believe that additional examination will eliminate all risk you will never stop getting information and you will never make the decision to open the business venture. You will be paralyzed in terms of business for sure.

To avert this you need to make a reasonable and rational decision about the level of danger you are willing to adopt. Once your Due diligence International gets you to that level of dangers you then need to stop the diligence and open the business.

Leveraging Public Records During Due Diligence Procedures

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Leveraging Public Records During Due Diligence Procedures

Each business organization needs to ask itself assertive questions about scam potential and global due diligence, through Global due diligence investigations. For example:

– How worried are you with scam uncovering within your organization?
– What kind of residue could happen if potential fraud was to take place?
– What steps has your organization taken to reduce the danger of a hidden fraud?

Fraud uncovering can paralyzed an organization. It is necessary that every organization look at ways it can evaluate its own level of fraud publicity and develop a set of policies and process to help mitigate fraud risk. This article will draw several steps organizations can take to better understand those the organization is administering business with.

Leveraging Public Records During Due Diligence Procedures

Access to Public Records:

Does your business break public records? Specifically if you require access to public records, such as bankruptcy and court records, would you learn how to do so? Would you learn how to access these kinds of records in a tight span of time? There are many senses to access such records, and accessing these records can help the investment better and understand who you are making business with. For more detail read this blog post https://backcheckgroup.com/blog/accessing-public-records-due-diligence-procedure/

Know Your Business Partners:

Who are you really making investment with? Study the dangers that companies expose themselves to during normal business transactions. Study the dangers when companies expose themselves by not performing global due diligence against organizations and people they do business with. By combining the added step of domestic and international due diligence processes companies are capable to query against the following kinds of records: UCC filings, lawsuits, watch list searches, judgments, bankruptcy records, media publication searches, tax liens, and much more.

Can you think of other situations where due diligence can be of added value within your organization, or market sector? Let’s give a moment to review danger within the real estate industry.

The danger of fraud within the real estate industry:

The massive mortgage and the consecutive fallout have resulted in specific attention being paid towards fraud danger within the real estate industry. Examine the results of an appraisal fraud within a real estate transaction. Those lending finance need the assurance that the appraisal of the property they are about to release a loan for is correct and is not inflated to give higher selling commissions. By performing Due diligence International and checking professional references the lending organization is able to have a raised understanding the individuals that are included in the transaction they are reviewing.

The latest occurrences have simplified that mortgage fraud is a risky type of fraud that can have a trickledown effect within the economy. Today the demand to mitigate real estate fraud could not be greater. Technology has made it easier to understand those you are making business with in both the real estate industry and other industries. You should also read checklist for overcome danger and fraud.

Leveraging Technology to Access Records:

Technology has made progress into how one can discover public records. Gone is the need for trips to city hall or to a local public library. Progress in Internet technologies has acknowledged for an additional layer of clearness within business. Details such as SSN authentication services and id documents services can be given seamlessly and on demand thanks to progress in database technologies. For the individual that is issues about those he is partnering with on a real estate transaction, or other kind of business relationship he now has an addition set of resolution at his disposal to help mitigate fraud risk. You can also visit this site for manage fraud risk.

Due Diligence For Long-Term Investing and Trading Success

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Due Diligence For Long-Term Investing and Trading Success

Great executed global due diligence made before investing is the foundation on which everything else you do stands.  It is the method by which you limit down the options on your watch list.  It is the method by which you do what you can’t to be the victim of scam, ala Madoff or any of the other hundreds of ways people lie to get your money.

There are many ways to make money in the world of trading and investing over the long haul when you find out where you have an advantage and you stick with taking edge of it. You are not required to win every trade and you do not need to try to get your luck in any one trade. What is important for you to do is manage your trading so that you lessen the danger of losing all of your money in any particular trade, as well as widening the risks you are taking over a number of ideas, so that if any one of them is a total failure, you still have money in which to investment.

How can you do that?  It takes additional time and effort, but not as much as you might think.

Due Diligence For Long-Term Investing and Trading Success


Instilling some simple methods to help you do your research can make all the difference. The old standard for this thought procedure is the SWOT analysis also find more here. The letters stand for –

  • Strengths – What does this company have going for it from your overview? Is it run well?  Does it have a powerful history of income increases?  Does it control a specific sector?  Is it a small company that organizations cannot invest in?  Is its cost irrationally low for some reason not connected with bad results or internal flaws?  Does it much stack up against its competitors?  And so many others.
  • Weaknesses – What is functioning against it?  Is it in a stationary industry?  Does it face powerful competition in key areas? Does it have so many debts relative to same companies? Is it subject to heavy government management? Is there latest unexplained development in the management team?  Has it changed auditors recently?  Does it have sufficient cash to do business?  … and so on.
  • Opportunities – What do you see in its forthcoming?  Has it got a conspicuous on a famous product?  Has its field just started up?  Is it developing to the point of perhaps beginning to be followed by experts for the first time?  Is it set up in a brand new booming geographic region?
  • Threats – What risks does it face? What could change that would make its standing not so good?  Are competitors challenging its main product?  Are there making a noise about nationalization of its foreign equity?  Is there a higher court case coming up?  Does it depend heavily on an appealing CEO?  Does hurricane season affect it?
  • There is no specific answer to this type of research.  You will perhaps find some articles, financial reports, news items, or analysis that could be taken either as bad or good on just about every point on the worksheet.  What you will find is how you feel about all the reality and details you have collected, net positive or net negative.
  • When you do choose to enter a trade, the investigation will be your format for the ongoing Global due diligence investigations as whether this is an investment to stay in or not.  You will be much faster to notice if a positive is degenerate, a weakness going bad, an opportunity not panning out, or a threat coming to be, so that you know when to get out of a bad position and move on.


In each phase of the business, this is the way of thinking that lets you move forward with your eyes open, actively managing your settlement making procedure from entry to exit. For more details about Due Diligence read here http://www.fastgraphs.com/research_articles/2013-10-08-chuck-due-diligence