On this area, we run a check on organizations that you are to enter into business with, be it their directorship, financial position, asset base, their other dealings, etc. This would give you a competitive advantage by knowing the other person better and also minimize your risks.
On the same note, we also run a check on individuals, say employees, suppliers, agents, distributors, and e.t.c. Without emphasizing, the cost of having a dishonest, incompetent or unqualified employee it may be too prohibitive.