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Corporate Risk Intelligence
Vendor Onboarding: Nine Red Flags
Most vendor problems are visible at onboarding, in the paperwork the organisation already holds.
6 min read · Alpha Intel Advisory
Visible at the Outset
None is conclusive. Two or three together justify a closer look.
- Registered address that is residential, shared or does not exist on site
- Incorporation date shortly before the tender or first order
- Directors or shareholders related to an employee involved in approval
- Bank details in a name other than the contracting entity
- Pricing materially below or above the market without explanation
- No verifiable client history for the contracted scope
- Statutory filings absent or persistently late
- Sole-source justification prepared after the vendor was selected
- Reluctance to permit a site visit
A Tiered Response
Value, access and criticality should determine depth. A data-processing partner and a stationery supplier do not warrant the same review.
Record the Decision
Where a flag is accepted, record who accepted it and why. That record is what protects the approver later.
This article is general guidance on method and standard. Alpha Intel does not publish client matters or identifying information without explicit written authorisation.