Walk the Third-Party Red Flags
Use red flags to set proportionate diligence, mitigation, and approval conditions.
01 Classify 02 Mitigate 03 Approve Distributor review A high-commission distributor with government ties wants a vague market-support contract. Third parties can create liability when they act for the company, especially around public-sector business. Red-flag escalation Facts first, controls second, approval last. A high-risk third party should not be approved or rejected on vibes. The review should convert red flags into facts and controls. Reflex Approve because the channel is strategic. The business knows what would make the relationship acceptable. Anti-bribery diligence is proportionate to risk and depends on evidence, not optimism. Risk tier The distributor touches government hospitals and…
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