Sophisticated investigative activity aimed at collecting the elements useful to support the
evaluation of reputational risks connected to a partner or target company including the
integrity and reliability issues of the people involved.

Reputational due diligence is essential for:
– Merger and acquisition (M & A)
– Partnership
– Joint Ventures and collaborations
The key to strategic risk management is the Reputational Due Diligence, which supports
strategic management and risks of business initiatives in international markets. The
combination of Integrity Due Diligence with Political Due Diligence allows investors to
obtain a complete assessment of the possible reputational risks associated with a
business partner. This concerns compliance and corporate governance issues in relation
to individuals and target companies as well as the reliability of the political environment in
a given country. Attention to “human” risks assigns to the Reputational Due Diligence a
truly strategic attribute in the risk management process. Below we discuss the relevance of
the evaluation of reputational risk in the due diligence process. Furthermore, it expands
the many hidden sources of reputational risks that can be revealed during the Integrity and
Political Due Diligence process. The benefit of reputational due diligence is to improve the
chances of an investor to find complete and reliable business partners and to allow him to
protect his initiatives from harmful political disruptions. Reputational Due Diligence ensures
compliance with “best practices” on compliance and corporate governance rules.
Furthermore, the transparency of the surrounding commercial and political networks
increases. Providing critical information to identify hidden and related reputational risks at
an early stage contributes to an extensive decision-making base with respect to foreign
investments. As a result, management resources can be used effectively and transaction
costs optimized.
The careful analysis of reputational risks is just as important as the assessment of market,
legal and financial risks. When undertaking business initiatives such as mergers and
acquisitions, foreign direct investments and joint ventures, it is crucial to assess the
integrity of the target company and the reliability of the political environment. In order to
assess the feasibility and estimation of the success of a project and to ascertain whether
there is a risk that the effort could be hindered due to the ambivalent position of a
commercial partner or the resistance of political actors. The Reputational Due Diligence
improves strategic risk management in initial business transactions by assisting decision
makers to identify the “soft risks” associated with an investment by focusing on the “human





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