Vetting is the process of thoroughly investigating an individual or company before making the decision to go forward with doing business with them, hiring them, accepting donations from them, or allowing them to volunteer. Doing a background review is just an element of the vetting process.
The Fundamentals of Vetting
The term “vet” is equestrian jargon. A horse was thoroughly examined (“vetted”) by a veterinarian before being allowed to race. The Venerable believes that all businesses enterprises should have access to top shelf vetting. Minimizing risk is a key reason to properly vet. Properly vetting assists in fulfilling the fiduciary duty and acts to establish appropriate business judgment. In modern business usage, vetting has come to mean the process of examining a person or company for soundness and integrity.
Vetting is Process
The vetting of a vendor is different than vetting a member of the board. Vetting starts with analyzing the context and needs of business. We develop the “right questions to ask.” Then we ask the candidate (prospective vendor, employee, donor, board member) the questions. We then confirm the accuracy of the answers. Is the candidate's CV, resume, or application accurate in describing all the skills and experience that are claimed? The process continues with the verification of information. Every degree, award or certification claimed by a candidate is checked for accuracy.
Depending on the parameters identified for the vet and the “right questions” the process can probe deeper, and potentially more intrusive. Credit history checks, criminal background checks, and personal interviews with past and current associates are fair game in the vetting process. The Venerable specializes in analysis of litigation history. We look at the candidate’s litigation response patterns and deposition responses which can be key indicators. Ironically, the opinion of the candidate’s neighbors correlates to future opinions by colleagues.
The Venerable delivers a comprehensive profile of your competitor’s legal history, location history, and activities. Consider a proactive analysis of your market using a vetting process. Knowledge is power and in a competitive market knowing your competition may provide the business intelligence your enterprise needs to succeed.
The High Cost of Failing to Vet
Vetting reduces liability and risks of exposure to monetary losses, lawsuits, and firings. Failure to vet can do harm beyond monetary judgments. Damage to reputation may not be able to be overcome. Most problematic are the loss of time, energy, and momentum plus the cost of limited resources to correct a “mistake.”
At The Venerable we provide a 360 degree profile of staff, partner, vendor, or prospect’s legal history, location history, and activities. The Vetting strategy we design for your company will be tailored to your enterprise’s needs. We recommend the implementation of a consistent pattern of vetting.