The major credit rating agencies, Moody's, Standard & Poors, and Fitch, bear a heavy burden of responsibility for the financial meltdown. It was their seal of approval that enabled Wall Street to develop a multi-trillion-dollar market for bonds resting on a foundation of tricky loans and bubbly housing prices. Institutional investors around the world were seduced into buying these high-risk securities by credit ratings that made them out to be as safe as the most conventional corporate and municipal bonds.
If your business has been impacted by the shrinking ranks of business lenders, consider Versant Funding.
Versant Funding can provide your clients the working capital they need until lenders re-enter the market
Volatility, Disruption and Fraud: The Makings of a Post Transaction Dispute
by Heiko Ziehms, Berkeley Research Group
Research into post m&a disputes, completion mechanisms, factors associated with disputes
The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
The major credit rating agencies, Moody's, Standard & Poors, and Fitch, bear a heavy burden of responsibility for the financial meltdown. It was their seal of approval that enabled Wall Street to develop a multi-trillion-dollar market for bonds resting on a foundation of tricky loans and bubbly housing prices. Institutional investors around the world were seduced into buying these high-risk securities by credit ratings that made them out to be as safe as the most conventional corporate and municipal bonds.
If your business has been impacted by the shrinking ranks of business lenders, consider Versant Funding.
Versant Funding can provide your clients the working capital they need until lenders re-enter the market
Volatility, Disruption and Fraud: The Makings of a Post Transaction Dispute
by Heiko Ziehms, Berkeley Research Group
Research into post m&a disputes, completion mechanisms, factors associated with disputes
The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
The Great Recession, increased regulation, regulatory back- lash, and the decrease in consumer confidence in the banks have led to major disruptive developments in the way people and small businesses access credit, an important element to the growth of the U.S. economy. Given that more than 70% of U.S. GDP is related to consumption, access to credit is required for continued growth. As a result of the aforementioned events over the past five years, peer-to-peer and online direct lending have rapidly emerged as a solid alter- native to mainstream banking and lending. It is poised for very strong growth and is likely to change the landscape fundamentally in a relatively short time. The banking sector continues to be one of the few remaining sectors where fundamental disruption can still occur as banks find themselves in a unique environment where government related institutions implement new changes, leaving banks paralyzed and unsure how to move forward. As these recent competitive forces are unlikely to reverse (barring any legislative action) the banks and other intermediaries really only have three options: join them, innovate, or die. Given that the latter is not an option (though the banking sector has gone through a phase of massive consolidation since the early eighties with less than half the number of banks left), banks and credit card companies are having difficulty determining how they will be able to beat the continuing onslaught. Joining the party and splitting the spoils to the benefit of all involved is the preferred, if not the only, realistic option for most. The concept of “collaborative consumption”1 is increasingly pervasive in our culture and peer-to-peer and online direct lending, it can be argued, is an expression of this new movement in which trust is the “new currency.” To win that “currency” back, traditional financial services companies will have to think outside the box, to regain their place at the top. The issue is timely, urgent, and not going away any time soon.
Learn what can you do to stay a step ahead of fraudsters without limiting revenue growth. Prevent Financial Fraud in your organization with the help of HLB HAMT
PAGE 280APPLYING THE CONCEPTTRUTH OR CONSEQUENCES PONZI SCHEM.docxsmile790243
PAGE 280
APPLYING THE CONCEPT
TRUTH OR CONSEQUENCES: PONZI SCHEMES AND OTHER FRAUDS
In the financial world, you always have to be on the lookout for crooks. Fraud is the most extreme version of moral hazard, and it is remarkably common.
The term Ponzi scheme has its origins in a 1920 scam run by serial con artist Charles Ponzi. Promising a 50 percent profit within 45 days, he swindled unsuspecting investors out of something like $250 million in 2014 dollars. Ponzi never invested their money. Instead, he paid off early investors handsomely with the money he obtained from subsequent investors.
Financial laws are now far more elaborate than in Ponzi’s day, and governments spend much more to enforce them, but frauds persist.
Bernie Madoff is the leading recent example. For decades, Madoff was a respected member of the investment community and able to escape detection. In the same manner as Ponzi, Madoff was redeeming requests for funds with the money he collected from more recent investors. Madoff’s con, which may have begun as early as the 1970s, failed only when the financial crisis of 2007–2009 depleted his funds, making it impossible for him to pay off the final cohort of wealthy, sophisticated—yet apparently quite gullible—investors and financial firms. The Madoff scandal dwarfed Ponzi’s racket: at the time the scheme blew up, the losses were estimated at $17.5 billion, and extensive efforts at recovery have put final losses in the neighborhood of $7 billion.
Unfortunately, in a complex financial system, the possibilities for fraud are widespread. Most cases are smaller and more mundane than those of Madoff or Ponzi, but their cumulative size is significant. One source devoted to tracking just Ponzi-type frauds in the United States listed 70 schemes worth an estimated $2.2 billion in 2014 alone.*
We aren’t going to get rid of Ponzi schemes and other frauds (see In the Blog: Conflicts of Interest in Finance). But the mission of ferreting them out and prosecuting those responsible is essential. A well-functioning financial system is based on trust. That is, when we make a bank deposit or purchase a share of stock or a bond, we need to believe that the terms of the agreement are being accurately represented and will be carried out. Economies where property rights are weak and enforcement is unreliable also usually supply less credit to worthy endeavors. That means lower production, lower income, and lower welfare.
imagesIN THE BLOG
Conflicts of Interest in Finance
Financial corruption exposed in the years since the financial crisis is breathtaking in its scale, scope, and resistance to remedy. Traders colluded to rig the foreign exchange (FX) market, where daily transactions exceed $5 trillion, and to manipulate LIBOR, the world’s leading interest rate benchmark (see Chapter 13, Applying the Concept: Reforming LIBOR). Firms have facilitated tax evasion and money laundering. And Bernie Madoff engineered what was arguably the largest Ponzi.
Millionaires move markets. Managing the money of millionaires should therefore mean that one can ride in the slipstream of their fortune-making endeavours. Or so the market wisdom goes. In this context, the global wealth management industry has been attracting a lot of attention. Its star has been in the ascendant. For the past decade, while other parts of the financial markets have stumbled, wealth management appears to have shone brightly – as a concept, if not as a successful business.
An overview of our company and the work we do with funding of large projects such as infrastructure, humanitarian and environmentally beneficial developments.
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
Learn what can you do to stay a step ahead of fraudsters without limiting revenue growth. Prevent Financial Fraud in your organization with the help of HLB
The 2017 Regulatory and Examination Priorities Letter1, published by FINRA on January 4th, is a fitting reminder of the resolve of Regulators to better execute their mission of investor protection and market integrity. Although the Libor and FX scandals might seem like distant memories, Regulators have continued on the war path. We would like to share some thoughts based on work we have been involved in last year. The idea is to help lawyers and banks have a grown-up discussion and be prepared if, or rather more likely, when, the Regulator knocks at the door.
The 2017 Regulatory and Examination Priorities Letter, published by FINRA on January 4th, is a fitting reminder of the resolve of Regulators to better execute their mission of investor protection and market integrity. Although the Libor and FX scandals might seem like distant memories, Regulators have continued on the war path. We would like to share some thoughts based on work we have been involved in last year in a regulatory competition investigation.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
The Great Recession, increased regulation, regulatory back- lash, and the decrease in consumer confidence in the banks have led to major disruptive developments in the way people and small businesses access credit, an important element to the growth of the U.S. economy. Given that more than 70% of U.S. GDP is related to consumption, access to credit is required for continued growth. As a result of the aforementioned events over the past five years, peer-to-peer and online direct lending have rapidly emerged as a solid alter- native to mainstream banking and lending. It is poised for very strong growth and is likely to change the landscape fundamentally in a relatively short time. The banking sector continues to be one of the few remaining sectors where fundamental disruption can still occur as banks find themselves in a unique environment where government related institutions implement new changes, leaving banks paralyzed and unsure how to move forward. As these recent competitive forces are unlikely to reverse (barring any legislative action) the banks and other intermediaries really only have three options: join them, innovate, or die. Given that the latter is not an option (though the banking sector has gone through a phase of massive consolidation since the early eighties with less than half the number of banks left), banks and credit card companies are having difficulty determining how they will be able to beat the continuing onslaught. Joining the party and splitting the spoils to the benefit of all involved is the preferred, if not the only, realistic option for most. The concept of “collaborative consumption”1 is increasingly pervasive in our culture and peer-to-peer and online direct lending, it can be argued, is an expression of this new movement in which trust is the “new currency.” To win that “currency” back, traditional financial services companies will have to think outside the box, to regain their place at the top. The issue is timely, urgent, and not going away any time soon.
Learn what can you do to stay a step ahead of fraudsters without limiting revenue growth. Prevent Financial Fraud in your organization with the help of HLB HAMT
PAGE 280APPLYING THE CONCEPTTRUTH OR CONSEQUENCES PONZI SCHEM.docxsmile790243
PAGE 280
APPLYING THE CONCEPT
TRUTH OR CONSEQUENCES: PONZI SCHEMES AND OTHER FRAUDS
In the financial world, you always have to be on the lookout for crooks. Fraud is the most extreme version of moral hazard, and it is remarkably common.
The term Ponzi scheme has its origins in a 1920 scam run by serial con artist Charles Ponzi. Promising a 50 percent profit within 45 days, he swindled unsuspecting investors out of something like $250 million in 2014 dollars. Ponzi never invested their money. Instead, he paid off early investors handsomely with the money he obtained from subsequent investors.
Financial laws are now far more elaborate than in Ponzi’s day, and governments spend much more to enforce them, but frauds persist.
Bernie Madoff is the leading recent example. For decades, Madoff was a respected member of the investment community and able to escape detection. In the same manner as Ponzi, Madoff was redeeming requests for funds with the money he collected from more recent investors. Madoff’s con, which may have begun as early as the 1970s, failed only when the financial crisis of 2007–2009 depleted his funds, making it impossible for him to pay off the final cohort of wealthy, sophisticated—yet apparently quite gullible—investors and financial firms. The Madoff scandal dwarfed Ponzi’s racket: at the time the scheme blew up, the losses were estimated at $17.5 billion, and extensive efforts at recovery have put final losses in the neighborhood of $7 billion.
Unfortunately, in a complex financial system, the possibilities for fraud are widespread. Most cases are smaller and more mundane than those of Madoff or Ponzi, but their cumulative size is significant. One source devoted to tracking just Ponzi-type frauds in the United States listed 70 schemes worth an estimated $2.2 billion in 2014 alone.*
We aren’t going to get rid of Ponzi schemes and other frauds (see In the Blog: Conflicts of Interest in Finance). But the mission of ferreting them out and prosecuting those responsible is essential. A well-functioning financial system is based on trust. That is, when we make a bank deposit or purchase a share of stock or a bond, we need to believe that the terms of the agreement are being accurately represented and will be carried out. Economies where property rights are weak and enforcement is unreliable also usually supply less credit to worthy endeavors. That means lower production, lower income, and lower welfare.
imagesIN THE BLOG
Conflicts of Interest in Finance
Financial corruption exposed in the years since the financial crisis is breathtaking in its scale, scope, and resistance to remedy. Traders colluded to rig the foreign exchange (FX) market, where daily transactions exceed $5 trillion, and to manipulate LIBOR, the world’s leading interest rate benchmark (see Chapter 13, Applying the Concept: Reforming LIBOR). Firms have facilitated tax evasion and money laundering. And Bernie Madoff engineered what was arguably the largest Ponzi.
Millionaires move markets. Managing the money of millionaires should therefore mean that one can ride in the slipstream of their fortune-making endeavours. Or so the market wisdom goes. In this context, the global wealth management industry has been attracting a lot of attention. Its star has been in the ascendant. For the past decade, while other parts of the financial markets have stumbled, wealth management appears to have shone brightly – as a concept, if not as a successful business.
An overview of our company and the work we do with funding of large projects such as infrastructure, humanitarian and environmentally beneficial developments.
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
Learn what can you do to stay a step ahead of fraudsters without limiting revenue growth. Prevent Financial Fraud in your organization with the help of HLB
The 2017 Regulatory and Examination Priorities Letter1, published by FINRA on January 4th, is a fitting reminder of the resolve of Regulators to better execute their mission of investor protection and market integrity. Although the Libor and FX scandals might seem like distant memories, Regulators have continued on the war path. We would like to share some thoughts based on work we have been involved in last year. The idea is to help lawyers and banks have a grown-up discussion and be prepared if, or rather more likely, when, the Regulator knocks at the door.
The 2017 Regulatory and Examination Priorities Letter, published by FINRA on January 4th, is a fitting reminder of the resolve of Regulators to better execute their mission of investor protection and market integrity. Although the Libor and FX scandals might seem like distant memories, Regulators have continued on the war path. We would like to share some thoughts based on work we have been involved in last year in a regulatory competition investigation.
The 2017 Regulatory and Examination Priorities Letter1, published by FINRA on January 4th, is a fitting reminder of the resolve of Regulators to better execute their mission of investor protection and market integrity. Although the Libor and FX scandals might seem like distant memories, Regulators have continued on the war path. We would like to share some thoughts based on work we have been involved in last year. The idea is to help lawyers and banks have a grown-up discussion and be prepared if, or rather more likely, when, the Regulator knocks at the door.
Mercer Capital's Value Matters™ | Issue 2, 2020 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
4. 4
RECENT OBSERVED TRENDS IN OUR CLIENTS’ ENGAGEMENT WITH THE
INTELLIGENCE PROCESS INCLUDE:
Higher demand for market intelligence
Earlier engagement with intelligence experts
Formalising the intelligence process
Direct involvement between legal counsel and deal
teams
Cyber due diligence is on the rise
Increased focus on culture and ESG concerns
WHAT TOMORROW’S
D EA LMA K ER S SH OU LD B E
TH IN K IN G A B OU T TOD AY
BY TOBY THOMAS, DIRECTOR, DEAL ADVISORY
& ALICE SHONE, ASSOCIATE DIRECTOR, DEAL ADVISORY
Fund managers around the world are actively considering which sectors and industries
are most attractive in the new investment environment. A sustained economic downturn
– and differences in the pace of recovery – means that investors will invariably be more
exposed to new industries and geographies. High competition for a limited supply of
distressed assets or opportunities in ‘hot’ sectors will put pressure on deal teams,
shortening the deal process and potentially leading to expedited decision-making. All
this at a time when fraud and cyber risks are elevated, as businesses come under
pressure to attract investors and secure loans, and criminals exploit an uncertain
environment and vulnerabilities in remote working.
5. 5
INTEGRATE CYBER DD
INTO THE DEAL TIMELINE
VERIFY INFORMATION
WITH TESTING AND
CONTROLS
REPORTS SHOULD BE
CLEAR ABOUT RISKS,
COSTS AND TIMEFRAMES
MATCH EXPERTISE TO
THE TARGET IN QUESTION
DETERMINE RELEVANT
METRICS TO INFORM
DECISIONS
UNLOCKING VALUE
THROUGH CYBER
DUE DILIGENCE: KEY
CONSIDERATIONS FOR
DEAL TEAMS
BY ANDREW SHAUGHNESSY
SENIOR ASSOCIATE, CYBER SECURITY
When done well, cyber due diligence gives a
clearer view of the cyber risks present in a target,
the potential costs of managing those risks, and
an opportunity to factor those into pricing and
valuation. However, it is not a straightforward
silver bullet. It is an assessment of complex risks
which is often conducted with limited information
under critical time pressure. The wrong approach
can leave investors no more informed about the
investment target’s risk profile and cyber security
costs, as well as having wasted vital days in their
deal timeline.
Drawing on S-RM’s experience in cyber due
diligence, we discuss five critical aspects of the
process and how to get the most out of it.
1
2
3
4
5
6. A
6
In this interview, S-RM’s Head of
Corporate Intelligence, Martin
Devenish MBE, asked Sanderson for
his insights on the current
diligencing environment, the shift
toward stakeholder capitalism in the
PE sector, and the future of vendor
due diligence.
SPOTLIGHT: AN
INTERVIEW WITH
PHIL SANDERSON
BY MARTIN DEVENISH MBE, HEAD OF CORPORATE INTELLIGENCE
Do you think vendor due diligence (VDD) has a role going
forward?
Q
VDD is helpful when it brings order. It is easier to sell a business when the key
points have been considered in good time rather than just in time. So I believe in
VDD. But it has got to be better. Legal VDD is often not worth the paper it is
written on. This is disappointing. Lawyers should be in a position to make
businesses sell better by thoughtful analysis. They don’t though, not enough of the
time anyway. It is an absolute waste of time to get all bidders in an auction to do
all the legal DD themselves, but this is the inevitable consequence of the legal
VDD reports that I increasingly reviewed.
8. 8
Most insolvencies are process-driven and relatively
straightforward. However, in a minority of cases, insolvency
practitioners (IPs) might need to unpick a fraud or look
beyond the numbers on the balance sheet for assets to
recover. In these circumstances, it is critical that the IP fulfils
its obligations to creditors by assembling a team with the
right mix of skills to maximise recovery.
Our team has already been engaged to
trace the assets of companies which have
failed to pay invoices or honour contracts
with subcontractors and suppliers, after
their liquidity dried up when their
operations screeched to a sudden halt.
Intelligence and investigative work can make significant
contributions to the insolvency process. Furthermore, recent
in intelligence industry techniques since 2008 can facilitate
the recovery of assets after insolvency.
CENTS ON THE DOLLAR:
INSOLVENCY, ASSET
TRACING AND RECOVERY
IN AN ECONOMIC
DOWNTURN
BY MARCUS FISHBURN, HEAD OF DISPUTES AND INVESTIGATIONS
& PHILIPPA WILKINSON, ASSOCIATE, DISPUTES AND INVESTIGATIONS
9. 9
Q: UNDER WHAT CIRCUMSTANCES
DO YOU CALL UPON INVESTIGATIONS
AND INTELLIGENCE SUPPORT DURING A
CONTENTIOUS INSOLVENCY?
CB: Firstly, if the books and company records
don’t accurately reflect what payments have been
made, this needs looking into. Secondly, we use
intelligence to understand the protagonists’ own
wealth.
There's an old adage that you need to watch out for
companies with a large fish-tank or where the
director is driving a Bentley! If you have what appear
to be clean company records, and the director's only
– and limited – income has been from this same
company for 20 years, but he lives in a GBP 15
million house, that’s a good sign that you need to
have a more detailed look into the company and its
finances.
If you have those suspicions, engaging somebody to
do wealth and asset reports can be extremely useful.
It can give you a much better picture of the dynamics
at play.
SPOTLIGHT:
CONTENTIOUS
INSOLVENCIES
AMIDST COVID-19 &
THE USE-CASE FOR
INTELLIGENCE
Carl Bowles is a Managing Director with
Alvarez & Marsal Restructuring in London. He
brings 15 years of experience and specialises in
offshore, asset tracing and contentious insolvency
situations. He has worked in numerous offshore
and onshore jurisdictions working on very
complex corporate insolvencies and winding
down large structures. In addition, Mr. Bowles has
also taken appointments as a trustee in
bankruptcy in complex cross-border and asset
tracing situations. Mr. Bowles is recognised as an
asset recovery expert in Who’s Who 2020.
Q&A BETWEEN MARCUS FISHBURN, S-RM’S HEAD
OF DISPUTES & INVESTIGATIONS, AND CARL
BOWLES, HEAD OF CONTENTIOUS INSOLVENCY AT
ALVAREZ & MARSAL
11. 11
C OR POR ATE IN TEGR ITY
TR EN D S & C H A LLEN GES:
A PAN EL D ISC U SSION
BY MARTIN DEVENISH MBE, HEAD OF CORPORATE INTELLIGENCE
WILL COVID-19 INCREASE OR REDUCE PUBLIC
SCRUTINY ON CORRUPTION AND
TRANSPARENCY ISSUES?
To what extent have the values underpinning
transparency, corporate accountability and good
governance been compromised by the urgency of the
crisis? What impact will that compromise likely have on
the trust civil society places on both the private sector
and public institutions?
We recently brought together a panel of experts to discuss
this and other pertinent questions relating to the integrity
concerns likely to emerge in the wake of the pandemic.
DUNCAN HAMES
Director of Policy
Transparency International UK
KRISTEN STONE
Director, Corporate
Intelligence, S-RM
BLAIR GLENCORSE
Founder & Executive
Director, Accountability Lab
HENRY WILLIAMS
Head of Investigations,
Themis
‘Making sure we have good transparency about
transactions that are conducted now will enable
accountability later. In the context of a crisis, it’s very
important that we should defend and strengthen existing
accountability mechanisms because during the crisis
there’s little opportunity to develop and mobilise new
ones.’
‘We're going to see a lot of companies cutting
corners and making decisions that they wouldn't
have otherwise made in order to stay alive.’
‘I think the pandemic is really pushing transparency and
accountability to the forefront of public discourse in a
way that hasn’t happened very much in recent years.
That creates a real opportunity for the creation of more
oversight bodies and for strengthening interest from the
public so that they can feel engaged and involved in the
enforcement of transparency and oversight initiatives in
their own countries.’
‘A lot of regulations are going to be almost set aside,
for instance, in financial services, while businesses
try and get back on their feet’
12. 12
Not all sectors will be equally exposed to the increased threat of corruption, nor
will corruption manifest in identical ways across different sectors and industries.
THE BUSINESS IMPACT
OF GOVERNMENT
CORRUPTION: POLITICAL
& ECONOMIC DRIVES
BY CVETE KONESKA
HEAD OF POLIITICAL & SECURITY RISK ANALYSIS
During periods of economic difficulty, corruption becomes much more prominent
in policy discussions and public debates, even if corrupt practices have not
become more prevalent. There is evidence that public perceptions of corruption
increase during difficult economic times, suggesting that at least in some cases
political and state actors tend to resort to corrupt practices during economic
crises. Indeed, when economic opportunities are scarce, the government’s role
as supporter of businesses means that some officials will be tempted to abuse
their position for personal gain. This implies that, looking ahead, businesses will
need to be increasingly vigilant about the threat from corruption and the
measures they take to reduce it.
13. 13
“EARLY STEPS TAKEN TO PREPARE
AND ADAPT TO NEW CORRUPTION
TRENDS WILL SAVE TIME AND
RESOURCES IN THE LONG-TERM”