Verify to Protect your Business or Investment in Russia

Every organization should have a strategic plan designed to grow and generate profit. When a great business opportunity knocks on the door, it is important to listen to the offer and to take the time and resources necessary to evaluate how good it really is. In today’s world, the business opportunities in Russia abound, but not all that glitter is gold.

Finding a great business partner can add a lot of value to any company. In fact, long before any company starts selling its products or services, it engages with a range of partners, including manufacturers, logistic companies, import and export agents, lenders, investors and in some cases outsourcing companies. Every aspect of a business is dependent on some level of partnership, so verifying who you deal with is extremely important.

Russia PI investigators have developed the following tips to help you protect your business when expanding, buying, selling or dealing with someone in Russia.

Be skeptical

Doing business in Russia requires a keen eye. Wise decisions are taken with accurate and reliable information and evidence, so be skeptical when presented with an extraordinary opportunity. Proper due diligence is key to success in Russia. A safe investment will most likely not make anyone rich from one day to another. Before putting money in any deal, thoroughly question all: deals, opportunities, documents, transactions, company information. You will need to verify that the company is real. A company background check will provide evidence regarding the ownership, legal registration and other basic information that will help you determine if it actually exists. Investigators will also provide you with evidence of operations and reputation.

Develop a strategy to target fraud

Coming up with the right fraud prevention and detection strategy for your business is not an easy task. Fortunately, there are tools and professionals that can help. A good strategy should detail controls and procedures, which include background check investigations and due diligence conducted by expert investigators in Russia. Every key person must be verified to understand if there is anything in their past that could jeopardize the business. Bad references, unverifiable business, employment or education claims, and past cases of fraud or criminal records need to be carefully examined.

It is also important to communicate the procedures to employees. Staff look to owners and managers for guidance to understand the risks and how losses affect the business and themselves. Russia and the Ukraine are a high-risk environment, and those risks need to be properly mitigated. If not, be prepared for a costly learning lesson.

Experience and know-how are required

International business is complex. When verifying businesspeople from a foreign country it is important to consider that the laws, the procedures, the government entities and many other things change. In Russia, even what may seem like the simplest verification should be handled by professional investigators in Russia with boots on the ground, who have the know-how and the resources to obtain reliable evidence in the country where you need them. Get clear evidence and information before you decide.

It is probably time to take a better look to what Russia can offer to your business, but before rushing in, get due diligence and take a deeper look into any new deal!