Any organisation that sells through channel partners should have a due diligence programme in place, where it conducts proactive integrity analysis on its channel partners prior to engaging them and throughout the life of their engagement with the company. However, many companies, in their mad scramble to kick off some form of due diligence programme, have neither thought through programme objectives nor given any considerations to best practices.
There are two types of companies: proactive and reactive. Some decide to implement due diligence programmes based upon comments made at compliance conferences they have attended, observing competitors and industry partners conducting due diligence and the fear of being left behind should they not also have a programme in place.
For others, instituting a due diligence programme is not reactive at all. These companies truly see an intrinsic value and business advantage in conducting due diligence on third parties, as well as working towards the development of a comprehensive third party compliance programme – which seeks to reduce the risk of selling through the channel and builds business value through stronger sales partners. For these companies, a due diligence programme represents an opportunity to get ahead.