Maintain compliance with online due diligence

Posted By putri Articles due diligence

A large number of companies of all sizes from around the globe cannot cope with the pandemic and have had no choice but to shutdown their businesses. This situation has left surviving companies to quickly seek alternative third parties, with only a few options to choose from. The limited alternatives tend to drive the companies to ignore compliance. With the lack of controls over the purchasing process, the finding of alternatives could be a vulnerable area for fraud risks, such as kickbacks and gratification, as well as scams.

Increased liability

History has shown that fraud risks increase during a crisis. To avoid the increasing risks companies should maintain compliance amid the crisis by conducting due diligence.

The increasing risks also mean the increase of potential liabilities for companies. In Indonesia, due diligence is more than just a fraud prevention tool. It is a corporate liability standard according to PERMA No. 13 the Year 2016 concerning procedures for handling criminal cases by corporations.

Article 4 paragraph 2 of the regulation mentions that if the corporation does not conduct the steps needed to prevent the criminal act, prevented greater impact to occur, or ensured compliance to the applicable legal provisions to prevent the occurrence of the criminal act, they can be liable for conducting the crime.

In other words, should a company stumble upon a criminal case, for example, a corruption or bribery case, they can be charged for allegedly doing or conspiring the crime because of the absence of due diligence.

It is critical that companies should maintain their compliance to avoid risks and liabilities by conducting due diligence.

Online due diligence is the solution

In the situation where working remotely has become a new normal for companies, online due diligence can give distinct benefits.

Integrity Indonesia with more than fifteen years of experience in the compliance industry offers you a comprehensive due diligence service through Know Your Vendor™.

The Know Your Vendor™ solution helps our clients to mitigate supply chain risks by providing a consolidated panorama for due diligence on third parties.

By using the most recent technologies to monitor the clients’ supply chains, Know Your Vendor™ allows the client to import their vendors and assigns to each of them a questionnaire, this is a critical step for the due diligence process. Clients can then follow the progression of the due diligence in real-time,as well as access the report and score at a click of a button.

For more detailed information on how Know Your Vendor™ and other compliance services can help your company, contact us today.