Vetting

AAA

DEFINITION of 'Vetting'

A thorough and diligent review of a prospective person or project prior to a hiring or investment decision. Vetting most often refers to an individual or group, such as how a board of directors will "vet out" a prospective CEO or other top management position. Vetting of potential suppliers of a contract or business service is a common practice for the managers of a publicly-traded company, where past business results, costs and personal relationships all figure into the final decision.


INVESTOPEDIA EXPLAINS 'Vetting'

Today's economies are so global that vetting takes on an increasingly important role. Potential employees or business partners may be located on the opposite side of the globe, with teleconferencing and email replacing face-to-face contact and meetings. Vetting must often be done via the internet or by outsourcing parts of the process.

For investors, vetting often takes the more common name of "due diligence", the rigorous process of researching a potential investment prior to purchase or sale.


RELATED TERMS
  1. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  2. Opportunity Cost

    1. The cost of an alternative that must be forgone in order to ...
  3. Outsourcing

    A practice used by different companies to reduce costs by transferring ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence ...
  5. Nomination Committee

    A committee that acts under the corporate governance area of ...
  6. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
Related Articles
  1. Personal Finance

    Losing Money? Don't Blame Your Broker

    Tempting as it is to pass the buck for your losses, the true culprit may be closer to home.
  2. Options & Futures

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
  3. Options & Futures

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  4. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  5. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  6. Investing News

    Starbucks As An Example Of The Value Chain Model

    Management consulting guru Micahel Porter developed the value chain model in 1985; here's how it works, using a well-known real live case study: Starbucks.
  7. You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.
    Stock Analysis

    How You Depend On Qualcomm Every Day

    You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.
  8. Few people build a multi-billion dollar business and leave it. But these did just that.
    Investing News

    What Bill Gross, Steve Jobs and Steve Wynn Share

    Few people build a multi-billion dollar business and leave it. But these did just that.
  9. If there's any bank that's too big to fail, JPMorgan Chase & Co. may very well be the best example. Just look at its return on equity.
    Stock Analysis

    JPMorgan Chase: Too Big (And Profitable) To Fail

    If there's any bank that's too big to fail, JPMorgan Chase & Co. may very well be the best example. Just look at its return on equity.
  10. Since 2000, Apple has grown into a $610 billion company with a market cap larger than the GDP of all but 20 countries. Just how did that happen so quickly?
    Stock Analysis

    The Key To Apple's Scale? Half A Billion iPhones

    Since 2000, Apple has grown into a $610 billion company with a market cap larger than the GDP of all but 20 countries. Just how did that happen so quickly?

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center