Red Flag Analysis — Delve Tech DD

3.2

Avg Red Flags/Company

4.4

Avg Yellow Flags

8.8

Avg Green Flags

1535

Total Red Flags

Top Red Flag Categories

Red Flag	Frequency	% of Portfolio
Other	698	143.9%
Template artifacts	294	60.6%
No RTO/RPO disclosed	181	37.3%
No WAF	79	16.3%
Single cloud dependency	71	14.6%
Privacy/PI criteria excluded	60	12.4%
No SIEM	51	10.5%
Short audit period (3mo)	44	9.1%

The top 3 red flags are systemic: no RTO/RPO disclosure, short 3-month audit periods, and excluded privacy/processing integrity criteria. These aren't company-specific failures — they reflect the compliance automation template's defaults.

Flag Count Distribution

Average company has 3.2 red flags, 4.4 yellow flags, and 8.8 green flags.

Red Flags vs Score

There is a negative correlation between red flag count and overall score. However, the relationship is noisy — some high-scoring companies still have many flags (often about audit period length rather than technical gaps).

Flag Balance by Score Tier

How does the red/yellow/green flag mix change across score tiers?

High scorers (7+) have more green flags and fewer red flags — but they still have red flags. The difference is in the severity: high scorers' red flags tend to be about audit period length, while low scorers' red flags are about missing controls.