Foreign investor  whose name cannot be disclosed in accordance with the NDA

In 2010, a compliance request was received from a foreign client. The purpose of the compliance check was the activities of the subsidiary in Ukraine: assessing the existing fraud risks, the quality of control systems and preparing recommendations to minimize risks and improve control systems.
Otten Consulting experts identified the main risks for some important business processes (info provided partially only):
  • risks of fraud when choosing suppliers;
  • increased risk when working with carriers;
  • shortcomings in working with debtors and lack of transparency in calculations;
  • high dependence of business on personal relations and agreements of the hired director;
  • management risks (manual control).
As a result, a detailed report was provided and the necessary meetings were held in order to get out of the current situation, several scenarios for getting out of the current situation and the risks associated with each scenario were provided. Due to the presence of significant risks to the company’s reputation abroad, our client decided to sell the business. Otten Consulting experts consulted the client in the process of completing the transaction and subsequent payments.