A) FINANCIAL & OPERATIONAL STRESS
- Liquidity shock: Can the vendor survive 90–180 days with delayed payments?
- Cost inflation: +10–30% input costs — margins still positive?
- Capacity stress: Sudden +30% demand or −30% volume — delivery intact?
- Dependency risk: % revenue tied to top 1–3 customers (red flag >40%).
Verdict: Stable / Fragile / Critical
B) STRATEGIC & SUPPLY RISK
- Single-source exposure: Any critical component with no backup?
- Geopolitical exposure: China, Russia, Middle East, Red Sea, Ukraine links?
- Regulatory shock: ESG, sanctions, data, labor — compliance ready?
- AI readiness: Manual processes vs. automated, forecast-driven ops.
Verdict: Resilient / Exposed / Replaceable
C) EXECUTION & TRUST TEST
- Response speed: Decision → action cycle <72h?
- Transparency: Real-time KPIs or excuses?
- Crisis behavior: Past failures — owned or hidden?
- Alignment: Incentives aligned with your outcomes or just their margin?
Verdict: Partner / Transactional / Liability
🔴 FINAL STRESS SCORE (CEO SNAPSHOT)
- GREEN: Keep & scale
- YELLOW: Dual-source + renegotiate
- RED: Exit plan now
