More due diligence needed

Prior to investment decisions, many companies generally carry out only the bare minimum of due diligence risk evaluations, said Asia Risk.

Companies are often ‘blissfully unaware’ of the range of risks that threaten the viability of their investments, said the consultant.

Traditional due diligence, often entailing lawyers and accountants, is ‘deceptive and can create a false sense of protection’ which can cost the company its very existence, claimed Asia Risk.

‘All too often companies badly underestimate the scope of due diligence required,’ said Steve Bingle, Vice-President at Asia Risk.

He added: ‘Robust due diligence is imperative, especially in today’s market conditions. It should play a strategic and active role in the investment decision process so as to inform and justify the decision and reduce uncontrolled gambles.’

Extensive due diligence may cost a little more time and effort and nominal fees but the pay back is huge if it prevents the organisation from getting into a bad deal”

Asia Risk consultants provide the MORE (Managing Opportunities & Risks for Enterprises) Due Diligence service.