Risk assistance in Due Diligence engagements
Before engaging into an agreement or contract with another party, a reasonable firm or person is typically expected to conduct research or exercise caution. The procedure by which a prospective acquirer assesses a target firm or its assets for an acquisition is a typical illustration of due diligence in numerous industries.
As expected, entering into a proposed transaction with another party carries with itself a lot of potential risk and challenges. Great expertise and experience are needed to recognize and assess al of those risk.
This systematic analysis and reduction of risk associated with a business or investment decision is known as due diligence.
How can Deloitte help?
Due diligence being the complex task as it is requiring large amount of time and skill. Deloitte can help you and your business to perform risk related parts of Due diligence (policy and procedures review, exposure staging, provisioning, AML) in the most thorough manner and be ensured whether are you undertaking the right decision which is the subject of Due diligence research.
Areas in which Deloitte can help you are:
- Recognize the risks that may emerge in Due Diligence.
- Estimate and Quantitate credit and market risks of the potential action.
- Estimating Data quality, documentations and credit risk models already in place when undertaking M&A of another bank or financial institution.
- Assess the appropriateness and compatibility of risk systems of the institution being bought with the risk systems already existing in your institution.