Intelligo Risk Barometer 2022

Pre-Investment Risk Indicators and Insights

A Deep Analysis of Pre-Investment Risks

Intelligo’s annual Risk Barometer analyzes and identifies the top pre-investment risks disclosed on the background checks we ran in the past year as a reference for future due diligence and analysis. The insights are based on data from thousands of background checks on individuals who were reviewed by Intelligo’s background intelligence technology and expert analysts.

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Detecting Risky Behaviors

A sample of 3,000 background checks on individuals was examined for this report. All the reports in the sample had at least one risk-indicative flag. Our search yielded 6,327 flags of varying levels. We found that while some of the most concerning flags were limited in number, there was a surprisingly large amount of flags related to ‘low-key’ risk that could still call into question an individual’s suitability as an investment partner.

‘We see how, increasingly, investors are approaching allegations of executive moral misconduct with a zero-tolerance stance, ignited in part by the societal pressures and the reputational and economic liabilities associated with a public court case, both in lawsuits and bad PR’

Dana Rakovsky, Chief Research Officer at Intelligo

Four Risk Categories

After analyzing the wide variety of flags that are used for Clarity background checks, we grouped them together to demonstrate four categories of risk that one should consider when reviewing the results of a background check. Since Intelligo uses AI and human research analysts to perform background checks, both system-automated and custom analyst flags were included:

> Behavioral Risk

> Reputational Risk

> Financial Risk

> Professional Risk

Behavioral Risk

Financial Risk

Reputational Risk

Professional Risk

Getting the Full Picture

When it comes to proceeding with an investment opportunity or evaluating a company’s management, transparency is key. Being unaware of the full picture could lead to significant financial losses — an outcome that could be avoided if all the facts are known from the start. With the results of our 2021 review, it is clear that background intelligence is an essential step to take in the due diligence process to truly minimize exposure to risk.