Additionally, www.AmericanSecurityToday.com due diligence may be
not impossible, during July 2019 COVID-19.
- Edition 46
required by investment partners
and failure to perform it can lead
The shut-down of many industries
to greater liability than just loss of
and borders severely limits the ac-
investment.
cess that is needed to properly as-
sess an organization.
For example, venture capital (VC)
firms often require due diligence
Likewise, altered processes give
evaluations before providing fundpoor
insight into how an organi-
ing.
zation typically functions, , making
it difficult to judge the effectiveness
If it’s later found that you lied in
of processes and teams.
your due diligence reports or that
information was hidden you could
This creates a host of issues, includ-
be sued for fraud.
ing those reviewed below.
The Challenges of Due Dili
Inability to conduct on-site visits
gence
During
• Depending on the type of products
COVID-19
being produced and the spread of
an organization, numerous site vis-
Although
some
its are often performed.
aspects of due dil-
• However, with travel restrictions in
igence can be per-
place, many of these visits are not
formed
remote-
possible.
ly, many require • This is particularly true for organi-
physical presence.
zations with offices or facilities in
other countries.
This makes performing
due dili-
Inability to meet in person
gence difficult, if • Like site visits, in-person meet
39