Risk evaluation

Transaction Risk

The risks that have to be controlled in a transaction:

Risks around the material itself:

• nature of the material offered: technically, chemically and legally.
• Who is offering it: the producer, a trader (in which case there has to be taken special caution)
• Is the material strategic,
• Is the material subject to ‘dual-use’ legislation,
• Geographical origin of the material

Financial Aspects of the transaction:

• Is the supplier an established firm,
• Do we know him from the past
• How were the past records?
• Do we have details such as physical address, bank relation details, EORI / Tax numbers?
• Is he on a sanction list by name, by country?
• Are the invoices according to the rules?
• Is there no discrepancy in expectations of bank accounts
• Any change of bank account number to what is expected, especially in “last minute”.

Risks to do with ‘contradictions’:

• Is the supplier identifiable with respect to the material offered?
• Is the place of shipping ‘logic’
• Do the payment requirements relate to market customs, to exclude discrepancies such as: (example) offering from Spain, payment to Tunis and shipment from Guatemala,
• Is the supplier in the country of the material,
• Does the material / the supplier stem from a high risk country?
• Can the supplier be traced on ‘google maps’,

Transport related questions:

• Anything unusual about the transport, such as packing, port of origin, volume as expected
• Are customs invoices according to expectation and according to rules
• Weight in relation to volume

After receipt at warehouse:

• How is the packing,
• Is weight matching with announcements, with the orders,
• Was the transport route to expectation and were there any geographical trajectories that give room for doubts / speculations / danger

Any deviation of the above standard is to be checked straight away!

Established 13 may 2024