Vetting

Definition
Vetting is the structured evaluation of information, proposals, vendors, hires, or decisions before commitment. It exists to filter risk and reduce preventable error prior to execution. Vetting is not delay. It is pre-commitment scrutiny designed to protect downstream stability.

Application
Vetting operates through defined review criteria, background checks, financial analysis, reference validation, model review, due diligence procedures, and approval thresholds. It determines whether an input is allowed into the system.

In accounting, vetting appears in review of journal entries, new vendor setup, policy changes, or system modifications. In finance, it governs investment analysis, forecast assumptions, acquisition modeling, and capital allocation decisions. In operations, it evaluates process changes, technology adoption, hiring decisions, and supplier selection.

When structured, vetting is criteria-based rather than personality-based. Standards are explicit. Risk factors are defined in advance. Review focuses on whether conditions are met, not on who is presenting.

When unstructured, vetting becomes subjective. Decisions depend on persuasion, familiarity, or urgency. Risk review is inconsistent. Late-stage corrections increase because weak inputs were admitted without disciplined filtering.

Vetting reduces the probability that instability enters the system.

Implication
Vetting absorbs pre-execution risk. When proportionate and disciplined, it reduces downstream correction and oversight. Leaders spend less time reversing decisions and more time refining direction.

When excessive or poorly defined, vetting slows execution without improving reliability. Layers of review multiply. Decision latency increases. Human judgment is overused in repetitive approval cycles.

The condition of vetting reveals how an organization manages risk entry. Where criteria are clear and consistently applied, inputs are filtered before strain propagates. Where vetting is informal or reactive, instability surfaces later and at higher cost.