Our initial inherent risk question to determine if a vendor is high, moderate, or low risk in the financial risk area are:
Related to a financial risk, which of these statements below apply to this vendor?
a. This is a commodity vendor = low risk, no further questions needed
b. This it not a publicly traded company = moderate risk
c. This vendor's annual revenue is less than $100M = moderate risk
d. This vendor has been in business less than 5 years = high risk
e. 25% or more of this vendor's business is with us = high risk
If a vendor scores high risk or moderate risk in this risk area (along with 9 others), then we would gather and review due diligence documents, etc. to determine if the residual risk and our risk response.
Thank you,
Christi Osburn
Christi Osburn
| Vendor Management Program Manager |
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