We all know that Background screening is basically completing an employee’s identification and verification procedures.
Due Diligence is a more intensive way of checking a pre-employed person’s background and this is usually conducted on business partners, investors, and other high ranking employees since the risk of hiring employees with higher positions can also affect the company and its reputation.
Companies that perform Due Diligence background screening for these types of individuals may ask any amount of questions since the answers to their questions will ensure the safety and future of the company and the partnerships.
What is the difference between a normal background check and a Due Diligence check?
The term “background check” is often perceived as a procedure done before hiring a new employee. This includes checking a pre-employed person’s criminal records, reference interviews, education background, employment background and other verifications.
Due Diligence background checks are mostly conducted on business entities. An example of this is a firm that is conducting a background check for a banking investor before starting the investment. The objective of a Due Diligence background check is to prevent fraud and the risk of a company being exposed to liabilities.
A Due Diligence background check often asks these questions:
“Does this person own a legitimate business with legal requirements and credentials?”
“Has this person been involved in any fraud or corruption cases?”
“Are the business owners involved in any illegal action/s that may negatively affect the company”
Companies that perform Due Diligence background screening for these types of individuals may ask any amount of questions since the answers to their questions will ensure the safety and future of the company.
In conclusion, background screening is an important part of company due diligence. With the increasing number of threats to companies (organized crime syndicates, money launderers and more), it’s crucial that firms perform thorough background screenings on partners, employees who will be in contact with sensitive information or assets.
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