1. Kick starting your due diligence programme
26 Jan 2017

2. Introductions The Red Flag Group Andrew Henderson Alisia Grenville
The Red Flag Group is a global integrity and compliance risk firm. We apply our unique set of advice, technology and business intelligence applications to manage the integrity and compliance risks of our customers. We have a proven methodology that we use to help companies manage these risks.
Andrew Henderson
Andrew is the General Manager of the EMEA region and is based in London, He is responsible for all operations in the region, including sales, advisory, business development, client services and due diligence delivery
Alisia Grenville
Alisia is the Director of Advisory for the EMEA region and in charge of delivering value- add Advisory services to the Red Flag Group’s clients and to support clients in ensuring they get the most value out of their compliance technology solutions

3. Agenda Introduction Why does your programme need a kick-start?
How to do it
What next
Wrap-up and future webinars

4. Why Kick start?

5. Why do you need to kick-start?
You have no programme and:
You need to get results fast
You have no buy in from management, but know you need to start
The task seems too large and don’t know where to start
You have a programme and:
It is not getting traction, or acceptance
It’s not delivering results

6. Poll – What state is your programme in?
You don’t run any due diligence, have no management support but know it needs to be done
You have been tasked with building a programme but don’t know where to start
Your programme is not delivering you the value you need
You need to show a progress in a short time
None of the above

7. How to do it

8. The long term goal Costs managed Focus on Value
Smart and efficient process
Flexible and scalable
Impact on business
Detailed risk assessment
Risk based due diligence with remediation and follow-up
Focused Training and Communications internal and external
Documentation
Internal review
Adequacy

9. High Risk Medium Risk Low Risk Requires significant diligence steps
Risk based Approach
High Risk
Requires significant diligence steps
Medium Risk
Some work – depends on circumstances
Low Risk
Minimal work required

10. How to Start Top and Tail
Focus on the High risk and the Low risk first
Medium risk is harder to assess, and requires more time to implement.
Focus on getting results early, but ensuring that the resources you spend are not going to be wasted, and can survive internal challenges

11. High Risk Partners High risk: Select 10 to 50 high risk partners
Use the criteria of:
Type of partner (knowing the scope of the programme)
Location of partner – focus on known hot-spots for your company
Spend
The aim is to show the business what they don’t know about their key partners.
Perform research at a depth to allow you to find information.
Media is ok in some places, but not in others (often high risk locations)

12. Low Risk Partners Low risk: Select 10,000 low risk partners
Use the criteria of:
Type of partner (knowing the scope of the programme)
The aim is to:
Provide a baseline statement that none of the names are on key lists, such as SND, HMRC etc.
Highlight those that are not actually low risk
Perform research at a depth to allow you to make that statement – but focus on low cost and speed.

13. Kick-start plan Get fixed budget to perform the top and tail exercise.
If using external resources assume K
Gather names
Extract from CRM/ERP systems and manually find the high risk partners
Data quality is still important – especially for the low risk screening.
Run the diligence exercises
Select the depths needed, based on risk and location
Can be completed in 2 months

14. Use the Results Analyse the information:
Do you have concerns about any partners you have worked with for many years – now that you know more
What could be the impact to the business if this had not been found?
What issues have you found in your low risk partners?
What can you do about the partners now that you do know?
Focus on the next round of budgeting.
Who needs to be convinced, and what do they need to convince them
Have a plan for phase 2

15. What next?

16. Phase 2 Implement a risk based process This is 2-3 year process
Clearly Assess what risks you will cover
Work out how to quantify those risks and what information you will need
Gather the information (questionnaires etc)
Design workflows and approvals
Rollout
This is 2-3 year process

17. Phase 3 Monitor, Manage & Improve This is ongoing
Re-do the diligence at appropriate times and depths
Manage internal controls as needed
Audit key partners
Review the programme annually
This is ongoing

18. End Please complete the survey Ask any questions
Let us know topics you would like to hear
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