Knowing your risks is at the heart of every Channel Compliance Programme

We conduct risk assessments of your channel to know where to focus your attention.  We know how to establish a risk based channel program that adds value to your business.

It can be very difficult to know all the risks you face in your channel program in each of your local markets.

We have conducted Channel Risk Assessment projects in over 20 countries, including traditionally high-risk markets like China, Russia, Brazil, and Iran. We know how to identify risks in your channel and how to take steps to start managing those risks.

Risk Assessments are all about how you can take on more risk.  We are pro-business and believe that understanding risk is the key to taking more risk to drive more value. 

Common considerations for assessing risk in the channel that we consider as part of our process include:

  • how important the channel partner is to your business plans
  • revenue and margin estimates and whether they vary across the program
  • countries where the partners operate and the business model in that country
  • whether the partner is a first, second or third tier channel partner and how close they are to the end customer
  • whether you have had issues with certain channel partners previously
  • whether the channel partners are related in their ownership or operations
  • whether the channel partners participate in marketing development funds or other incentive programs
  • whether the channel partners are selling to certain high risk customers or sell certain high risk products

We have a proprietary system for risk rating the channel partners that we can discuss with you before you engage us for this type of project.


Why conduct a risk assessment across your channel?

Some common risk areas in the sales channel include:

  • Bribery and anti-corruption in sales deals with government or semi-governmental agencies
  • Export control and illegal sales of restricted products
  • Channel stuffing and revenue recognition issues
  • Licence management abuse
  • Poor discounting and control abuses around discount levels and justification
  • End-user/customer fraud
  • Returned goods and faulty service records
  • Poor controls over channel partner selection and management
  • Sanctions and illegal sales to sanctioned customers
  • Collusion and bid rigging with customers or channel partners
  • Kickbacks to your sales people or customers
  • Appointing unnecessary sub-contractors and installers
  • Grey-market and second-hand trading in used products.

Why The Red Flag Group?

  • Experience.  We have completed hundreds of projects in the channel risk rating area.  We know how to engage with channel teams and how to help them find the data to complete a risk assessment.
  • Expertise. We are experts at identifying potential risks in your business.  We know business, we are practical and we know how to engage with the business to find the risks.
  • Practical.  We have the business and compliance knowledge and expertise across 194 countries and speak 45 languages in-house. This means that if you engage us to help manage your risk assessment, we are able to understand your business and help you identify key risk areas and plans on how to bridge the gap to manage them effectively.
  • Content. If you are focused on compliance risks,  then it would make sense to engage The Compliance Firm.  Compliance is our business.  We just don't focus on anti-corruption or export controls, we focus on over 23 key risks areas that are relevant to your business.
  • Substance. We focus on Substance over Form.  We are not interested in running a bunch of checklists and forms for business managers to fill out to identify risk.  While collecting the information from the business is important, we think that there are better ways of collecting that information that sending our surveys.