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Guardrails and thresholds

Guardrails come before review. If they are wrong, the rest of the section will feel wrong too.

Colabra does not flag issues in a vacuum. It combines extraction with the thresholds and policies you set for the deal. That is why this section belongs at the front of Flag & screen: it controls what the later pages will surface.

Start with these first

If you only tune a handful of settings before review starts, make them these:

SettingWhy it changes the output quickly
Buyer jurisdictionShapes how sanctions, compliance, and cross-border risk are interpreted
High-scrutiny country codesDecides which jurisdictions get heightened screening attention
Evidence materiality floorStops trivial items from flooding the findings list
Litigation claims floorPrevents minor disputes from reading like major litigation risk
Assignment / change-of-control policyDrives one of the most common contract-risk outputs
Customer / supplier concentration thresholdsControls when commercial concentration becomes an actual flag

If these are wrong, the rest of the review often feels either too noisy or too thin.

You can review the full Diligence settings page for a complete field-by-field reference.

Same evidence, different signal

Real deal example: thresholds change the working queue

A small cross-border deal with stricter jurisdiction sensitivity and lower materiality may surface a very different first-pass findings list than a large domestic platform add-on. The evidence did not change. The guardrails did.

Where to set them

  • Set the baseline at workspace scope when the same posture applies to most deals.
  • Override at project scope when this transaction genuinely needs different thresholds or scrutiny.

That keeps the firm’s default review posture consistent while still letting a specific deal deviate when it has to.

What happens if you skip this

If the settings are left at the wrong defaults:

  • contract findings may overfire or underfire
  • entity screening may feel too broad or too narrow
  • gap analysis may highlight the wrong missing evidence
  • the team can end up debating the output when the real problem is the posture

Next step