Neglecting due diligence: A cautionary tale

As a sector, we undertake due diligence checks at the start of a contractual relationship, but few organisations monitor the risk and financial position throughout the life of a contract.

The current economic climate is challenging for social housing providers and suppliers alike, but it is ultimately your responsibility to ensure your service partners can continue to deliver and that contingency plans are in place if the worst case were to occur.

The storyboard we have created brings to life the real-life risks that can occur when appropriate due diligence checks are not performed correctly, or at all.

At Altair, we recommend: 

Due diligence is not a tickbox exercise.

Analysis of risk and financial information must be questioned and understood commercially rather than just financially. The numbers are important, but crucially what do the numbers reveal?

Due diligence is about more than just skimming the top cream of the milk.

Develop the full picture on your delivery partners. Ensure a rich full picture has been developed, including group structures, parent companies and any private or equity-backed finance are included.

Due diligence is not a one-off process.

Regularly review and monitor the risk and financial position of your suppliers.