Red Flag Risk Rating System
A standardised, evidence-driven red-flag system that scores risks across categories (financial, legal, reputational, operational, compliance). Weighted metrics and clear thresholds produce instant triage levels so sponsors can prioritise investigations, allocate resources and trigger governance or remediation quickly and consistently.
Process
Define scope, categories & thresholds
Agree audit scope, risk categories and scoring scale (e.g., 1–5 or 0–100). Set threshold bands (green/amber/red) and escalation triggers aligned to sponsor appetite, deal size and jurisdictional sensitivity.
Identify data sources & evidence rules
List primary and secondary sources (documents, registries, interviews, media, sanctions lists, SWIFT confirmations). Define admissible evidence, chain-of-custody rules and minimum corroboration needed to support each score.
Scoring methodology & weighting
Design a transparent scoring model: assign weights per category, sub-score formulas, and modifiers for role/jurisdiction risk. Include rule-based overrides (e.g., confirmed criminal record → automatic red flag) and a simple algorithm for composite risk.
Validation, review & escalation logic
Validate initial scores via analyst review and candidate/counterparty response where appropriate. Map score bands to governance actions: monitor, enhanced due diligence, negotiated protections, or immediate transaction halt and legal escalation.
Reporting, dashboard & continuous monitoring
Publish a concise risk summary, drillable dashboard and one-page red-flag memo for sponsors. Automate re-checks on watch items, schedule periodic rescans and feed changes into the project risk register for continuous oversight.
INSTRUMENT REVIEW – MT799, SBLC, BGS, BOND PROGRAMS
We verify MT799, SBLCs, guarantees and bond programmes for authenticity, enforceability, sanctions exposure, and counsel-ready compliance to de-risk transactions pre-close.
KYC / AML ENHANCED DUE DILIGENCE
Onsite due diligence, stakeholder interviews and forensic media analysis validate operations, reveal reputational, regulatory, community risks and deliver counsel-ready reports.
BACKGROUND CHECKS
We perform targeted, legally compliant background checks to validate identity, qualifications, employment history and reputational risk for hires, partners or counterparties.