Your sales team approach you and tell you that they have just won a new client after weeks/months/years of engagement, understanding their needs, meeting the decision makers and putting together a successful pitch.
What should your reaction be? Go down to the pub and celebrate? Ring your lawyers to start drawing up contracts? Contact your “suppliers” to ensure you can meet the new order?
Often the client take on process can be challenging and it is likely that it is your client’s first chance to see what your business is like operationally. Whether you are a regulated business or not some form of internal due diligence should be undertaken.
Firstly, I would suggest that you should have thought about the client take on work much earlier in the process – you would perhaps look slightly silly if you uncover a reason why you cannot complete the work you have just won. Think of all your wasted time and effort, and perhaps costs you have incurred?
There are two key reasons for undertaking due diligence:
complying with Money Laundering Regulations, The Bribery Act, FCPA or perhaps international sanctions.