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Significance of Vendor Due Diligence for Third-Party Risk Assessment

Vendor due diligence (VDD) is an investigation process that verifies companies and avoids potential risks. How does VDD help in risk assessment and management?

In the digital world, any kind of fraud in business causes the loss of millions. While making a bond with the other party, vendor due diligence is an important factor. This process helps to evaluate the legal and financial status of the business. The business is exposed to financial threats if it does not comply with anti-money laundering AML checks. At any time in the relationship, if a third party is involved in financial crime, it leads to heavy penalties and fines.

What is Vendor Due Diligence?
Vendor due diligence is an important component while going into a new engagement in business. Corporations must go through all the data and documents of the company to avoid future risks. This process involves screening all the relevant documents of the business to understand its financial status. The financial statement, balance sheet and record of daily tarsactions are screened to examine business legitimacy.

Primary Steps in VDD Vendor Due Diligence
In this two-minute read, let’s explore how to conduct a due diligence process for vendors.

Pre-screening
It is the most essential step in vendor due diligence to find out the potential issues. Corporations must ask companies to submit their relevant documents to initiate the process. Primary checks are applied to ensure the smooth onboarding of vendors.

KYB Certification
Know your business KYB is an integral part of due diligence to verify it. KYB involved gathering the business data and screening it against databases of legal authorities. The analysis of documents and ownership structure is done to validate the business. According to research, 58% of frauds occurred because of inefficient KYB processes.

Background Check
The financial history is the focal point of vendor background checks conducted through payment service provider PSP. It helps analyze vendors’ past business practices and their legitimacy. Adverse media screening is also done to evaluate any history of chargebacks. If the company has any fraud or corruption history, it raises red flags.

Risk Assessment
Studies show that 70% of businesses experience fraud while operating. The main reason behind that is that there are improper measures for risk assessment. However, vendor due diligence plays an influential role in identifying potential risks and threats. On-time risk assessment prevents fraud and fines in attaining business future goals. Business partners will have transparency in financial relations.

Setting up Account
When the vendor is verified, the account is created with payment service provider PSP. Link the merchant’s mobile app or POS system to the PSP payment gateway for seamless payment processing.

How is Business Due Diligence Beneficial for Partnership?
Business partnerships get great benefits from VDD vendor due diligence while onboarding the partners.

Financial Security
Once the vendor is identified and verified, it ensures compliance with the rules and regulations. Companies that comply with AML checks indicate that it reduces the chances of financial crimes. This builds trust among vendors in the market that companies only onboard legitimate ones. Additionally, there will be less risk of fraud and security in terms of finance.

Understanding Operational Processes
Partnerships often involve collaboration on various operational aspects. Due diligence allows partners to gain insights into each other’s operational processes, supply chain, distribution networks, and customer base. Understanding these aspects helps in identifying synergies, streamlining operations, and ensuring compatibility between the partners’ business models.

Evaluation of Assets and Liabilities
Through due diligence, partners can evaluate the assets and liabilities of each other’s businesses. This includes tangible assets like property, equipment, and inventory, as well as intangible assets like intellectual property and brand value. Understanding the asset base and liabilities helps in determining the true value of the partnership and negotiating terms accordingly.

Improved Workflow
If a business encounters fraud or corruption, it badly affects its financial status. A significant loss occurs, for which the company needs to work again. It is necessary to tackle such obstacles to grow in the business world.

Evaluation of Management and Personnel
Due diligence includes an assessment of the management team and key personnel involved in the partnership. This helps in understanding their skills, experience, and capabilities to execute the partnership’s objectives effectively. It also provides insights into the organizational culture and potential challenges in integrating teams from different businesses.

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Assessment of Legal and Compliance Issues
Due diligence involves a comprehensive review of legal documents, contracts, licenses, permits, and regulatory compliance matters related to the businesses involved. This helps in identifying any legal or compliance issues that may impact the partnership’s operations or expose partners to legal risks in the future.

Confidence
When a corporation performs due diligence on companies during the onboarding process, it ensures that the companies are legitimate, providing financial security in the future. Corporate relations are built with great confidence without any risk.

Final Words
Vendor due diligence streamlines the onboarding process in the business world. Data collection, analysis, and screening help identify the potential risk. Once the business is verified, the payment account will open. Vendor due diligence checklist is applied to filter out the red flags. So it prevents fraud, corruption, and money laundering. Due diligence not only combats financial crimes but builds credibility in the market. Furthermore, enhanced due diligence EDD is required for high-risk profiles. In this way, all the potential risks and threats remain at bay.

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In-House vs Outsourcing Software Development

During the growth phase, every business faces the dilemma of whether to Outsourcing Development their IT services or doing it on their own. The answer mostly depends on which option is more efficient. Both approaches have their pros and cons, therefore we’ll discuss them in detail in the latter part of the article. But, first, let’s know the basic difference between in-house development and outsourcing software development.

The In-house IT team are the group of IT professionals that you hire yourself and that become one of your employees. You probably have heard the phrase “if you wanna do it right, do it yourself”. So if you live by this as a motto for your company, the in-house software development model will suit your needs. With this model, you will be hunting for software development specialists, interviewing them, and being responsible for the recruitment as well as development.

With the outsourcing model, where you will be outsourcing the software development process and IT maintenance services, you will search for the right managed IT service provider that can provide you with a dedicated team of developers. Depending on your requirements, you can hire just a couple of developers and manage the project on your own, or you can outsource the entire process of software development. I recommend that you go with entire project outsourcing if you don’t have a dedicated project manager in-house.

Let’s talk about both the approaches in detail.

In-House Software Development
As mentioned earlier, the in-house software development is a great option for the companies who want complete control over the development lifecycle. There are several benefits of this model and because of this, companies like Paypal, Amazon, and Salesforce build their IT infrastructure on their own.

Pros of In-house Software Development Complete Control
If you keep the development team in-house, you will have complete control over all the development phases. This becomes very important for businesses who greatly prioritise flexibility and frequent changes over cost in their software development.

Direct Access to the Employees
With the in-house software development model, you will know every ability or inability of your team members. This helps you assign them appropriate tasks based on their expertise. You’ll know the issues right when they occur and can resolve it quickly to avoid delays in the development timeframe. You can ask your in-house team to dedicate their time to work on the urgent tasks or bug fixes.

Ability to Work Immediately
Of course, recruiting and streamlining the in-house team will be a time-consuming process. But, once you’ve done it, your team can immediately jump on your projects. Access to in-house talent is seen by some investors as very favourable for a competitive advantage.

Understanding of the Project
The in-house team will be working alongside you and will have better insight into the project. They’ll be involved with the project from the start, therefore it will be easy for them to manage it post-deployment.

Thus, the in-house software development model suits companies that are ready to invest heavily in the talent recruitment and management process. The in-house development model is mostly adopted by large corporations as they have a heavy amount of funds to invest in. However, even companies like Google and Adobe outsource some part of their software development due to the comparatively much smaller cost of software development outsourcing.

Cons of In-House Software Development
No matter how fabulous the idea of in-house software development looks, the reality is far different. It isn’t always feasible for companies to hire IT professionals in-house for a one-time software project. These projects often will require less effort to manage once the software is launched, which means your expensive in-house software team will no longer have much work to do.

Sometimes, the companies management don’t have the expertise to manage IT projects, and don’t want to conduct recruitment for higher management. In such situations, the in-house development becomes a less practical approach. In fact, this is why around 64% of the companies across the world are outsourcing the software development process.

High expenses
Having a development team in-house is an expensive process. It would require a significant amount of investment in the recruitment process. You will also need to buy or rent out an office space to set up the workstations. After the project development is complete, you will still have to provide new work for the IT employees. This need can result in companies constantly being indulged in identifying and implementing new projects, even when initiating a new project is not suitable.

Time
Hunting for the right talent isn’t easy. You’ll be looking to hire decently qualified IT specialists who are willing to come to your company. This is very hard to find because it is likely that these qualified individuals will already be working with a company. So, to encourage them to join your company, you either will have to offer a higher salary, an interesting project or some other attractive benefit. But, whatever it is, it will cost you time and money. Looking for suitable talent, ensuring selected new talent are on the same page as the company, and building a team culture all takes time and attention. Whilst all this is happening, your project will remain paused. In current times, almost every innovation needs fast implementation and therefore it will be a gamble for your business if speed of launch is of high-importance.

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Herbal Remedies To Boost Calcium Levels And Increase Bone Strength

Calcium deficiency is a common health issue seen among old age people. How to increase bone strength safely and naturally? This is a common query heard from people. Treatments for calcium deficiency are generally done according to the actual cause of problem. Inadequate intake of calcium rich foods, lack of vitamin D and illness are some among the main causes reported for the formation of calcium deficiency.

Symptoms shown as a result of calcium deficiency generally vary from one person to another. Painful joints, brittle bones and osteoporosis are some among the main troubles reported due to low calcium levels. Let’s see here some herbal remedies to boost calcium levels. Do you like to consume dairy products? Including dairy products in daily diet is one among the safe ways to alleviate the troubles due to calcium deficiency. Milk is a fine example of food source with high calcium.

Apart from calcium, milk is also found to be as a good composition of vitamin D compounds. In order to achieve the best health result, it is generally recommended to make use of food sources like plain yogurt, cheese, butter milk and milk in daily diet. At times, certain people may find it difficult to tolerate with food sources with lactose. Such people can generally make utilize of food products like soy milk, rice milk and almond milk. If possible, drink a cup of almond milk daily in the morning.

Apart from improving calcium level in body, regular drinking of almond milk can also promote the energy production in body. It relieves the risk of fatigue and treats a wide range of health issues safely and naturally. Including green leafy vegetable in diet is another safe way to improve the level of calcium in body. Kale, lettuce, celery and broccoli are some among the best recommended food sources to improve calcium level in body.

Spinach is another safe food source to improve the amount of calcium and iron in body. If possible, make it as a habit to include boiled spinach leaves in daily diet. Soybean is one among the best recommended food sources to improve calcium level in body. In order to achieve the best health result, feel free to make use of soy milk daily. As per studies, including cereals in diet is found to be very effective to improve the amount of calcium in body. In order to get the best health result, feel free to include fortified cereals in daily diet.

Including nuts and seeds in daily diet is a natural way to alleviate the risk due to calcium deficiency. These food sources are found to be as a wonderful source of calcium compounds. Some among the fine examples of food sources with high calcium include cashews, walnuts, sesame seeds, almonds and macadamia nuts.

Calcivon tablet is one among the best sold products to treat calcium deficiency problems. Immediate and long lasting result is a key feature of this herbal product. You can make utilize of this herbal remedy twice or thrice per day. If possible, make it as a habit to utilize this remedy consistently for three or four months.

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