The internet has become a prevalent part of people's daily lives globally. It enables us to stay connected with family or friends living abroad, or improve our reputation, and promote our own businesses. In other words, our online footprint provides a comprehensive picture of who we are as an individual or what our business represents. And, as the Covid-19 pandemic hit, we spent even more time engaging with others online. As such, it is also the first place to start for a business intelligence investigation - an increasingly important element of a due diligence assignment prior to a new engagement.

1. What is business intelligence research?

Business intelligence research focuses on identifying risks associated with companies or individuals prior to a new engagement. Research uses investigative tools to uncover issues of concern, and predominantly focuses on preserving or safeguarding integrity and monetary value of a business. As such, it is often a report focusing on future risks based on past or current information. The information may come from any formal or informal source; however, it must be put into perspective and triangulated for veracity.

Investigations are tailored to the client's needs and can focus on a person, company, jurisdiction, or on a specific question of the client. For example, it may solely cover ESG issues, such as any potential harms of a company's plant to the environment and/or local communities or any issues of concern with its supply chain. When investigating a person, their track record, controversial connections and reputation could be investigated, including any ongoing probes.

The types of investigations vary as much as the clients. As there is such a wide variety of questions and objectives, methodologies of obtaining information demand creativity (within legal perimeters) of an investigation.

2. What does an investigation entail?

So, where does an investigation begin? It starts by verifying and gathering snippets of information of the client. We then try to establish a footprint of the company or individual, and aim at finding if there are any proxies, family members, business associates, corporate interests, or other jurisdictions that need to be covered in order to answer the client's question.

References found on the internet provide an excellent source to map out these interests, relationships, and former residencies. Many investigations may only use online sources and will often be successful in providing a comprehensive answer to the client's concern. For example, connections of a LinkedIn profile can verify studies or former employer and reports filed on environmental agencies' websites can disclose pollution issues of a company.

However, there is a significant amount of information is not directly available online and obtaining such information requires an investigator's inventiveness. For example, an investigation into a chemical storage unit may require a site visit or enquiries at the local community about any current or past environmental damage. In contrast, if we want to check a proposed investment's track record, discreet enquiries with former employees, industry journalists or competitors may be required to address questions on adherence to internal quality standards. In addition, an investigator may need various IT skills such as programming, knowledge of local databases or data analytics.

Although creativity is key to an investigator's skillset, knowledge of limitations is as relevant. A due diligence investigation must be conducted within legal perimeters, to not defeat its own purpose. As such, an investigator must know local, national and supranational data protection regulations. For example, when information is missing from a country's corporate register, there is a good chance another country's corporate register can disclose exactly that piece of information, e.g. Luxembourg's UBO register is relatively comprehensive in contrast to that of the Netherlands. A great investigator knows how to gather all relevant pieces of the puzzle within legal limitations, to create a complete picture of its subject while complying with law.

3. How is this relevant for ethics and compliance?

Individuals and the wider society increasingly demand adherence to ethical standards. Take the example of international banks, which, after several data leaks accompanied by public scrutiny, increased their efforts to investigate clients suspected of being involved in serious crimes. Moreover, if a person or company disregards ethical standards, social media and online media outlets allow anyone to scrutinise a person or company, and exponentially disperse their opinions. As such, a deep dive into your future counterparties is much needed to safeguard your own integrity and that of your business.

Beyond reputational issues, an in-depth investigative due diligence may also protect and improve a business's financial performance. It would reduce the risk of future probes, government fines and litigation. Checking for a company's corporate culture ensures that a new partnership of joint venture is not bogged down by inefficiency or a toxic corporate culture. Having a track record of in-depth checks into your counterparties may also make your company more attractive for future partners or investors.

4. An example of failing due diligence

On 28 October 2021, the Dutch bank ING announced that it would start phasing out services of its payment service provided Payvision. The bank had acquired the platform for USD 420m in 2018. Various news reports on this decision emerged in November 2021, stating that ING was closing down PayVision as the company was under investigation for processing payments that resulted from illegal investment schemes, including online pornography and gambling customers, which was against ING's own policy. Reportedly, ING sold PayVision back to its founders for USD 1.20 - taking millions of dollars in losses.

Such an example shows how a lack of investigation in a company's connections, clients, growth pattern and industry reputation may damage a future partner's business. Key questions that should have been tackled prior to acquisition is what the client's own ethical standards are; what client base PayVision had; how it had developed its business and what its corporate connections were.

In summary, we live in a time when societies increasingly demand disclosure of operations and adherence to ethical standards. Companies need to realise that they cannot ignore such demands and so formulate their business model accordingly to safeguard their reputation and value.

Business intelligence investigations are tailored to help businesses comply with these increasing demands. An investigator always need to act within the limits of law yet a creative approach always helps to go beyond regular due diligence reports' findings.

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What is one piece of advice you would give to your younger self?

Our progress and career are not linear. Often, lateral steps - such as moving to different industries, into different roles and studying at a later age - are most relevant for your joy and expertise.

If you had to choose an alternative career, what would you be doing now?

I would love to have been doctor - although I did not work out my specialism yet.

At the end of your career, if you were to sit and reflect, what one hope do you have?

That my work has had a positive impact on someone and that I have challenged myself.