An exit strategy that exists only in a contract has not been proven
Supplier exits can fail because alternative providers are not technically ready, information cannot be transferred, licenses cannot be recreated, or staff do not have the authority to act quickly. A supplier exit plan should connect commercial rights to operational steps and realistic elapsed time. For material financial-services arrangements, a desktop plan may be an insufficient basis for confidence.
We propose focused exit-readiness reviews and scenario exercises for arrangements whose disruption could threaten important services or other material obligations. The work starts with an agreed materiality assessment and the relevant contractual and regulatory context.
What the test needs to establish
Trigger: who determines that the supplier is failing or should be exited, and what evidence do they need? Continuity: what must continue while the change takes place? Data and access: are records exportable, current, usable and safely recoverable? Replacement: is the alternate route contracted, permissioned and tested? People: who understands the sequence and has the authority to act? Timing: could the transfer or workaround occur before the relevant harm threshold is crossed?
A tabletop can validate decisions and expose dependency gaps. A technical rehearsal may additionally test data restoration or connectivity, but should have a separate approved scope and safeguards.
Deliverables: evidence rather than assurance theatre
The proposed output is an exit-dependency map, activation decision tree, scenario script, observed gaps, realistic time assumptions, mitigation owners and a board-friendly summary. Where information comes only from a provider statement, that limitation must be identified. A “passed” exit exercise is not a guarantee that a future exit will be smooth.
When to commission this work
Useful triggers include the appointment of a new critical supplier, contract renewal without proven portability, significant service architecture change, reliance on one concentration point or a previous incident that exposed weak fallbacks. Supplier exit testing can be bought as a standalone piece or included as a scheduled activity within a wider managed programme, subject to scope.
Frequently asked questions
Do you execute a live supplier switch?
Only where specially scoped, risk-assessed and delivered with authorised technical and commercial teams. Standard engagements focus on preparation and structured exercise evidence.
Who approves termination decisions?
The client, through its authorised contractual and governance processes.
Is vendor concentration automatically unacceptable?
Not automatically. The risk depends on materiality, substitutes, controls, harm and tested recovery options.