Is your organization looking to hire a new executive, take on a new board member or possibly engage with a new vendor? How well do you know these individuals and companies? You possibly conducted a general background search; however, those searches often overlook crucial information that could impact your business.
By carefully vetting these individuals and companies, your organization can breathe easier knowing that you have performed your due diligence to choose the right leaders and build your organization’s future. Failing to vet the people sitting on your Board and in your executive suite potentially jeopardizes your company’s financial well-being and reputation.
How best can an organization vet these key principals and companies, and what information should be considered?
An effective vetting process should consider the following areas.
- Legal issues connected to the executive and vendor company, including the vendor’s key leadership
- Reputational issues and/or negative news
- Verification of any and all credentials
- Associates and affiliated companies
- Past public statements
A first step in the corporate due diligence process would be to have the subject (potential new executive, board member, or vendor) complete an extensive questionnaire and survey to identify affiliations, credentials, past and current court proceedings, including bankruptcies and litigation, and potential threats. Once completed, the questionnaire responses should be thoroughly investigated to validate the information as well as expand or contradict the information provided. This process can be completed with open-source intelligence, also known as OSINT.
OSINT is publicly available information and does not require consent from the individual or entity. Some common sources include public and government records, court databases, the internet, social media, blogs, and traditional media (i.e., TV, newspapers, journals, etc.). As with anything, you must always verify the source and information, as not everything on the internet should be considered true.
While a comprehensive vetting process may not prevent future issues from arising, it can certainly shed light on the areas of concern and eliminate possible candidates that increase the organization’s financial and reputational risk. If your organization needs corporate due diligence or other advisory services, Windham Brannon can help you in these endeavors – to learn more, reach out to your advisor, or contact Matt Stelzman
