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