What are the risks of not doing due diligence with companies in 2021?

In the information age, it can be easy to think that you can know everything there is to know about a company or individual simply by looking into social media, as well as a few public forum spaces where people are rather quick to express opinions. While these are useful tools, when it comes to companies, this just isn’t the case. Any company out there, regardless of whether they are good or bad company, if they know what is good for them, do their best to control PR in these areas. Also, people tend to be hostile and aggressive online even when such aggression is unfounded, meaning some false positives, or rather in this case, false negatives arising.

However, you may still think that you don’t need a China KYB or China UBO, simply because your own HR and business intelligence people should be able to do this research, right? Well, while we have no doubt about the abilities and skills of your own people, they aren’t really set up for the level of research necessary for this kind of due diligence.

Before we get into the risks of not putting this in the hands of professionals, allow us to clarify why your own people probably aren’t suited for, no matter how great they are at their jobs. With a company verification service, there are a lot of data sources that are deliberately difficult to obtain. These include certain public record government documents, financial records, business intelligence, various obscure logistics and input from other companies that formerly worked with them, as well as former employees.

All of this is put through some heuristic techniques to form a model of a company’s potential risks, its strengths, trends based on its history among many other things. This is not easy to do, and it requires a level of specialism that only a service like this can provide.

Obviously, the biggest risk is a company that just isn’t up to par, and will perform with the ethics and quality that you need. However, there are other dangers as well. In that same information age mentioned before, guilt by association is a real danger. People tend to conflate things due to simple, impersonal business associations, and that’s not something you want to have to fight. If you inadvertently partner up with a company that has a bad reputation that they’ve managed to suppress in the immediate public forefront, that reputation will still come around in enough time. A China KYB or China UBO service can prevent this, saving you potentially irreparable damage to your reputation by association, while also making sure that you are working with companies that have a solid history of great work ethic and general ethics, a company that you know you can rely on moving forward. This is not something to leave up to chance, and it’s not something that your own business intelligence people are set up to research.