1. How integrity due diligence can protect your company from a world of risks
Dr. Onkar Nath

2. Agenda What is IDD Why it is needed Talking points Methodology
Focal points
Phases of IDD
The Strategic Dimension
Legislation(s)
Is there any choice?
Conclusion

3. Integrity Due Diligence (“IDD”) is the gathering of independent information to gain an understanding of the integrity and corruption risks associated with a third party. It provides companies with a means to both identify these risks and confirm (or otherwise) information provided to them by a third party.
integrity due diligence is the act of investigating the counterparty with whom you are doing business – whether they are employees, board members, agents or representatives, customers, suppliers, JV partners or acquisition targets.

4. Why it is needed?
“The Days of thinking that suppliers who do unethical or illegal things can’t hurt you are over.  You can, and will, be held responsible for the people working for you in the supply chain, whether you like it or not.”

5. Why it is needed? Globalization Use of technology

6. Why it is needed?
To improve risk management in the broadest sense and to support better decisions on new investments and partnerships in all forms, including acquisitions, joint ventures, minority investments, strategic cooperation agreements or supplier-, distributor- or local agent relationships.

7. Talking points Case of VW and Tesco Domestic companies

8. Methodology for IDD
Secondary records available in public domain (includes National and International Media)
Interview of experts to confirm the information
This leads to development of risk profile

9. Focal points
Major focal points in this phase of the investigation include:
The existence of any connections between the business and any political figures, as well as how the company interacts with regulators, government entities, etc.
The nature and strength of any such connections and whether any of those connections have been leveraged for the benefit of the company
The extent, nature and credibility of any allegations made against the company or its key principals relating to bribery, corruption, money laundering, large-scale tax evasion, fraud or asset stripping
Any alleged connections between the company and organized crime or terrorist groups or broader risk of exposure to such groups

10. Phases of IDD

11. The Strategic Dimension
Passed due-diligence checks without concern.
Further action or investigation is required.
Area failed due-diligence checks. 

13. Legislation(s)

14. Is there any choice? substantial legal penalties reputational damage
litigation exposure and
financial losses through fraud.
Understanding the risks of doing business and learning how to prevent or mitigate these risks — is vital to informed, effective transaction decisions.

15. Conclusion
Corporations and institutions can attain a strategic and competitive advantage by pursuing an integrated approach to integrity due diligence. 
By assessing the trustworthiness and reliability of customers, business partners and any third parties, organizations ensure the fulfillment of compliance requirements, whilst concurrently facilitating a concerted effort to combat money laundering, fraud and corruption.
integrity due diligence is an essential risk prevention and risk mitigation tool which will add value to any strategic decision making process.

16. Dr. Onkar Nath CISSP(USA), CISA(USA), CISM(USA), CloudU
CISSP(USA), CISA(USA), CISM(USA), CloudU
CFE(USA),CNSM(India), CAIIB(India),IPIAM(USA),
CCSK, IDLA(USA), ISO LA, ISO LA,
BS LA, M. Sc.(Maths.), PGDCM, PGDHRD, PGDIM, PGDMM, PGDFM, MBA (HR),
Ph.D.(P.U, India), Ph.D. (AMSE, France),
FRAS(UK), FAMSE(France), FUWAI(India)

17.
Thank You