Episode Details

In this episode of Integrity Insights, Filip Brokes is joined by Verena Horne (Director at Berlin Risk) and Davids Alksnis (Consultant at Berlin Risk) to discuss the fundamentals of background checks and due diligence investigations.

The conversation provides a practical overview of how integrity due diligence works in real-world scenarios, why clients rely on external investigators, and how risks are identified, assessed, and communicated.

Key themes discussed

•  Background checks vs. due diligence
   The episode clarifies the distinction between the two terms: background checks as an initial screening process, and due diligence as a more in-depth, structured investigation aimed at fully assessing risks. 
•  Why clients commission investigations
   Clients typically seek due diligence when facing uncertainty around key decisions, such as investments, partnerships, market entry, or senior hires. The core objective is to understand who they are dealing with and what risks may arise. 
•  Types of risks assessed
   Investigations focus on a wide range of risks, including reputational concerns, source of wealth, sanctions exposure, governance issues, business track record, and behavioural red flags (including online conduct). 
•  Methodology and approach
   The discussion highlights the importance of a structured methodology based on the intelligence cycle: defining the research question, collecting relevant data, verifying sources, and producing actionable analysis rather than raw information. 
•  OSINT and human source inquiries
   While open-source research forms the foundation, many cases require human source inquiries to provide context, validate findings, and uncover information not available in public records. 
•  Jurisdictional challenges
   The availability and reliability of information vary significantly across jurisdictions. Differences in corporate transparency, media landscapes, and cultural norms can materially impact investigative approaches. 
•  Case example: uncovering fraud
   The episode includes an anonymised case where a seemingly credible company bidding for a major contract was ultimately revealed to be a fraudulent front for an individual with a history of criminal activity. 
•  Working with limited or excessive information
   Investigators must navigate both data overload and data scarcity. In low-information cases, creativity and alternative data sources become critical, while high-volume cases require careful filtering and prioritisation. 
•  The impact of AI on due diligence
   AI is increasingly used to process large volumes of information efficiently. However, the discussion emphasises the growing importance of verification, critical thinking, and human judgment, given issues around reliability, consistency, and trust.

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