The Discreet Science
Business Relationships – Assets or Risks?
The success of a commercial organization, and by extension the successful execution of the transactions it participates in, largely depend on the business relationships of its principals and employees. And while these relationships are often a company’s most valuable assets, they are also inherently risky and can pave the way for such issues as:
- Insider Trading
- FCPA
- Counterfeit and Gray market goods
-Employee Fraud
-Political risk
-Transactional M&A risk
The question is no longer just “who knew what and when?” but also “who knew who and when?” This question extends not only to direct relationships but also to company business partners, supply chain, and distribution networks.
To better understand the exposure to these relationship risks, our clients are increasingly turning to relationship mapping. This process leverages the proliferation of information about a company and its employees’ various relationships to assess relationship-related enterprise risk.
A comprehensive relationship map can be a revelation – you often don’t understand how many people and organizations your company is exposed to until you see it laid out in front of you. It’s a great way to ensure your relationships are going to generate greater profits and fewer problems.
