The approval and execution of high-dollar loans is a risky responsibility. In order to avoid taking on dangerous loans, approval staff are obligated to be thorough and detailed in their analysis of potential relationships. Due diligence is the process of gathering the information needed to analyze a borrower's creditworthiness.
In the process of due diligence, important ethical decisions may arise and often hinge on the multiple perspectives of the people involved. Ethics and Commercial Lending: Understanding Due Diligence includes a case study that involves multiple perspectives and analyzes an ethically compromised situation from the point of view of the different persons involved.