As the business landscape around the world continues to change and become more complex, regulatory compliance is becoming more crucial than ever. When you’re seeking investment or financing it https://fitboardroom.com/esg-due-diligence-in-investment-planning/ is imperative to do your due diligence thoroughly to ensure that your business is compliant now and into the future.
Regulatory due diligence is the process of the process of analyzing and monitoring an client, partner or investor’s background to ensure that they are in compliance with laws and regulations. It covers a wide range of topics, including environmental practices, legal compliance and corporate governance, data privacy, and more. It can be used to determine the ability of a target to adapt and improve its technological capabilities.
It’s a must for any M&A transaction. According to research by MetricStream, the global rate of failure ranges from 70% to 90%, with issues with regulatory regulations, geopolitical uncertainty and unwise acquisitions among the top three reasons. Due diligence in the regulatory arena can mitigate these risks, thereby increasing chance of a successful result.
To reduce risks to minimize risks, regulatory due diligence should be conducted simultaneously with financial and commercial due diligence. Failure to spot compliance issues could lead to substantial fines, loss of profit and a damaged reputation. This could even result in a criminal conviction in severe instances. It is crucial to be proactive and choose a software that lets you conduct regulatory screenings and due diligence across multiple jurisdictions. Nexis Diligence+ ™ integrates an integrated business intelligence platform and anti-money laundering services (AML), anti bribery and corrupt (ABC) and forensic services into a single source.
