SUPPLIER RISK AREAS
RISK CATEGORY: Antitrust & Corruption
There are seven integrity risks associated with this category. These risks are regulated by laws across the globe. The intention of these laws is to ensure companies conduct business in an ethical manner, promote fair competition for the benefit of consumers, and prohibit dishonest behaviour by individuals entrusted in a position of authority.
RISK CATEGORY: Employment, Safety & Reputation
An organisation's greatest assets can be its employees and its reputation. Therefore, compliance to laws and ethical practices that protect the wellbeing of employees also protects the business. These six risk areas focus on fair working environments for suppliers' employees and conduct that could impact the reputation of downstream customers.
RISK CATEGORY: Cyber Security & Business Stability
An area with no shortage of media attention and concern for organisations is cyber security and business stability. The potential for harm over the mishandling of company, customer and product data can cause irreparable damage to an organisation. Moreover, the expectations for safeguarding of information from consumers is at an all-time high. The Red Flag Group has identified four risk areas for companies that focus on the potential for disruption, misdirection or mishandling of products and information.
RISK CATEGORY: Environment & Governance
Taking a critical look at the environmental impact of an organisation remains at the forefront for regulators and consumers. However, without proper measures and controls, it is difficult to assess the complete impact a company and its supply chain has through the manufacture and distribution of products and services. Companies can therefore receive negative press or reports of misconduct for the actions of suppliers without complete knowledge of their practices.
The process of environmental governance refers to the decision making involved in the control and management of natural resources and the domain a company and its supply chain may impact. What this means is that companies should not only consider the environment in every decision they make, but should also promote systems such as monitoring the practices of suppliers and recycling used products. There are six risk areas that make up this category.