Due Diligence and Risk Based Assessment (RBA)

Due diligence is the process of checking for risks and making sure everything is legal and safe, eg. If a bank opens an account for a new customer, it checks who the customer is and where their money comes from.

A risk-based assessment means looking at how risky something is and deciding how much attention it needs. Not all parties carry the same level of risk. So instead of treating everyone the same, businesses:

• Spend more time checking people or deals that are high-risk.
• Do basic checks for low-risk cases.
• This helps them focus resources where the danger is greater.
• Allows them to identify which customers they want to business with.

A risk-based approach guides the company on performing due diligence checks.

Every company has their own compliance rules that they can customise within Harmoney to reflect their due diligence process.

More information on RBA configuration here.