Vendor Due Diligence Checklist

Business, Riskhouse International

Businesses are embracing vendor relationships if not for the supply of goods, it is to simplify processes with the end goal to acquire profits and grow.

While vendors are proving to be a necessity to businesses, they can come with risks that could harm the viability of a business. The process of vendor due diligence is therefore essential; it entails examining the ‘health’ of an entity before on boarding it as part of your supply chain.

At Riskhouse International, our Vendor Due Diligence checklist focuses on the core areas below:

General information and Compliance review

  • We confirm the legitimacy of company registration and compliance documents
 ICT software review

  • We assess the software’s in place that protects the client from data and privacy breaches and other cyber-related crimes
Financial standing review

  • We assess the financial status of the company and its credit standing to carry out assignments.
 Value Proposition analysis

  • We assess whether the value proposition offered to you by the vendor can be attained
Assets and equipment verification

  • We verify the existence and usability of vendors’ assets and equipment
 Leadership and workforce review

  • We assess the capability of the vendors’ human resources to deliver
Policies and Procedures review

  • We review policies and procedures in place in relation to service delivery
  Litigation history search

  • We search for any legal matter with the vendor that could pose a reputational risk to our client

Different vendors would require different checklists, therefore, the above is not exhaustive. Outsourcing our vendor due diligence services will provide you with extensive expertise, resources, and a more in-depth analysis of your prospective vendor.