Homework – Risk Factors You must Consider
Due diligence may be the process of evaluating the risks connected with transactions and also other business activities to ensure they are in accordance with your organisation’s policies and procedures. Challenging a necessary step that should not be ignored, especially when it comes to dealing with sensitive and high-risk areas.
When it comes to enhancing your due diligence functions, there are several risk factors that you must consider. One of the important is customer risk.
A customer risk assessment helps you identify whether customers pose a money washing, fraud, or other security risk. The process can also help you decide if it is advisable to conduct additional checks about them.
Identifying and verifying the customer’s identification is the first step in this process. This is a major part of client due diligence that is required by law.
The next step is to assess the nature of the relationship amongst the company as well as the customer. This is often done using a variety of varied tools.
You will have to collect information regarding the customer’s financial http://www.getvdrtips.net/angel-investor-due-diligence-checklist history, spending patterns and source of funds. The data you collect can be equalled with other information from your directories to give you a clearer picture of your customer’s identity and financial risk profile.
Additionally, you should also screen and keep an eye in your customer’s accounts. This can be completed using unnatural intelligence (AI) and equipment learning.