Due Diligence

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Due Diligence : Basics

Introduction

A background check or background investigation is the process of looking up and compiling criminal records, commercial records, and financial records of an individual or an organization.

Due diligence is an investigation of a business or a person prior to signing a contract, or an act with a certain standard of care

Examples

Example 1 : Say you are CEO of a company and you are hiring a new employee, you would want to verify the background of the candidate to safeguard the company's policies. You would want to verify with his ex-employer, residence verification, educational verification, and also his criminal records etc .

Example 2 : Say you applied for Passport, the passport will be issued only after the police verification is done. Thus ensuring that the person doesn't have any criminal records. This is the case where background verification is needed for the Govt. of India.

What does Due Diligence mean?

  • Pending Dues
  • Background Verification
  • Being Diligent

Importance

Driving any background check is a must for a long and prosperous business relationship. While any form of background check is better than nothing, it never hurts to weigh your options. Though most background investigations are completed without the consent of the inspected party, taking due diligence offers a more diplomatic alternative.

 

Due diligence investigations are voluntary, and have become the norm in the business world, so any worthy candidate should be more than willing to comply with your request.

Aim of Due Diligence

The aim of due diligence is to:

  • verify whether the information provided by the candidate is correct
  • discover any undisclosed problems with the candidature

What will be considered in a Due Diligence Audit

  • Food habits
  • Health Issues
  • Scrutiny of financial records
  • Intellectual skills

Types of Background Verifications

Mission

Your mission is to visit and verify the details of an assigned candidate/entity/institution.

You would

  1. Be visiting the given address and meet the Lead and the entire information of the lead will be provided through the app.
  2. Verify all the details mentioned for the lead.
  3. Fill out the Survey form on all relevant fields and get the pics uploaded in the app, which may be of any document or location

Lead - The job assigned to you for which verification needs to be completed is known as Lead.

Ensure that after the start of internship your schedule is shared with your reporting manager , so that the appointments with the candidates who are getting verified will be set up.

Process

Process is classified depending on which category the verification falls in:

General Process:

  1. The leads allocated will be reflecting in the respective app. The Name, Complete address and type of verification will be visible in your app as soon as we allocate it to you.
  2. Visit the address of the lead and meet the candidate.
  3. Depending on the type of verification, capture the corresponding pics of the locality and landmark.

  4. Ideally you need to select the status of the verification depending on how the appointment goes. For example if you have met the candidate in the given address and completed the survey form,then you need to select status as "Positive". If the candidate doesn't stay at the address then the status should be "Negative" with the respective comments mentioned

  5. Definitions of the statuses are mentioned in the section Terminologies.

  6. Upload the pics in the app and record the responses of the candidate in the survey form.The survey form may be of a physical document or virtual form in the app itself depending upon the client on behalf of whom we are conducting the verification.

  7. Complete the verification after rechecking pics, survey responses thoroughly.

Office Verification - What and Why?

What is Office verification?

Office Verification  is done at the office of the candidate to verify his candidature and also to check the details provided by the candidate.

  • You need to visit the office address provided, and meet the candidate in the office.
  • If he is not available, then try to meet the HR and complete the survey along with the pictures

Why is Office verification required?

Office verification is required to safeguard the company policies against a wrong hiring or against a wrong partnership/vendor on-boarding

 

Examples of Office Verification

Example 1: TCS has hired a new employee, the candidature of the candidate will be verified with all the previous employers he worked with.

Example 2: If a new merchant got on-boarded with Paytm, then verification is done in his Shop where the actual business is taking place just to ensure his and the shop's authenticity.

 

 

Residence Verification: What and Why?

What is Residence verification?

Residence Verification  is done in the Permanent/ Current address of the candidate to confirm his period of stay and authenticity with the ID Proof submitted. 

  • You need to visit the address provided and meet the candidate at the residence address provided.
  • If he is not available, then try to meet his relatives or neighbors. Complete the survey along with the pictures also by validating his ID Proof

Why is Residence verification required?

Residence verification is required to safeguard the company policies against a wrong hiring or against a wrong partnership/vendor on boarding.

Examples of Residence Verification

Example 1: Lets say that you are an owner of a villa in Shimla. You have listed the building on AirBnB platform. Now AirBnB performs an address verification to authenticate your ownership of the villa,and period of your stay at your permanent address and current address.

Example 2 : Lets say that you have bought a new Audi Q7, and hired a new driver. You will feel the need to verify the address provided by the driver to authenticate him. So we will be performing a address verification at your new drivers house to verify his period of stay etc.

Document Verification

Document Verification is also divided into different categories depending on the purpose of verification i.e., Loan, Credit Cards, Partnership, Franchise, acquisition, KYC document verification etc.,

  • Leads will be allocated to you through the app itself and you need to visit the address and meet the respective candidate
  • In Document Verification you need to collect a set of physical documents from the candidate, get another set of documents printed and signed.
  • You need to cross check the authenticity of the documents provided.
  • Click the pics clearly and upload them in the app.
  • You need to safeguard the documents collected and need to courier it weekly to our head office

Examples of Document Verification

Example: Lets say that you have applied for SBI credit card. Before the bank approves the credit card for you, the document verification will be done. You need to sign on the application form, provide your salary slips, bank statement , ID proofs, PAN Card etc.

So the due diligence is assured by sending a person to verify the above mentioned documents and  cross checking the details provided.

Terminologies Used

Below are few terminologies you will be using during the period of the internship

Positive - The candidate stays in the given address and provided the required information

Negative - The candidate did not respond properly or he denied to provide us the required information.

Untraceable - The candidate's address was not traceable.

Door Locked -  If the candidate claimed he would be present and when you visited the address the door is locked

TAT (Turn around time) - The duration from when the lead is allocated to you to the time you complete the lead is known as TAT

Lead - The case which is to be verified whether it be address verification, office verification, document verification etc., is known as Lead.

Do's & Don'ts

  • The pictures uploaded should not be blurred. They should be with the optimum clarity and should be discernible
  • Do not source the required pictures of a lead on whatsapp, this will be considered as malpractice.
  • When you are interacting with the candidate, you should conduct yourself in a respectable manner
  • You should always be in touch  with your reporting manager and reachable anytime.

How many types of verifications are there?

  • 3
  • 6
  • 8
  • 10

What does TAT mean?

  • Turn around time
  • Total travelling time
  • Total allocated time

Should the office verification be done only at office?

  • Yes
  • No

The End



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