Assess supply chain risks
Identify risks and irregularities in key regions and industries that could impact your business
Once your supply chain is mapped, the next step is to identify potential risks in key regions or industries relevant to your business. These issues often signal ESG risks—from environmental damage (E) and poor labour practices (S) to governance concerns (G) related to supplier operations. Identifying these risks early enables you to take proactive, informed action towards responsible business practices.
Why is risk assessment essential?
Assessing ESG risks is key to an efficient and effective risk-based supply chain due diligence strategy. It helps identify the most severe and likely environmental, social, and operational issues—enabling businesses to prioritise which risks to tackle first.
Companies that proactively manage supply chain risks spend 50% less on addressing supplier disruptions. By assessing risks early, you can allocate resources more efficiently, reduce costly surprises, and build a more resilient supply chain.
Risk assessment helps you:
Prioritise supply chain risks
Identify the most severe and likely ESG issues in your supply chain to make informed decisions and allocate resources where they matter most.
Prepare for disruptions
Assess risks early to take proactive measures and build greater resilience across your supply chain.
Support compliance
Align with due diligence regulations and global standards, such as the EU CSDDD and the OECD Guidelines.
How will amfori help you assess supply chain risks?
Assessing ESG risks can feel overwhelming—but with the right tools, it becomes a structured and actionable process. amfori offers a suite of solutions to help businesses evaluate supply chain risks effectively, such as social and environmental risk assessments through amfori BSCI and amfori BEPI, as well as amfori ESG Risk Compass and amfori SustainaPass.
A useful tool for your risk assessment, amfori ESG Risk Compass, is a powerful dashboard that provides country-level (and soon sector-level) insights into ESG risks. It helps you identify potential exposure based on location-specific factors, supporting early-stage risk identification and prioritisation.
Designed to support key steps of ESG due diligence, amfori SustainaPass helps pinpoint material topics, identify the most significant social and environmental risks, and understand where your business activities have the greatest impact. This solution also supports stakeholder engagement, an important component of ESG due diligence and sustainability regulations, as it serves as an important source of information, especially during risk identification.
What our Members are saying
At Nauterra, we carry out a structured due diligence process to identify and control the most relevant ESG risks associated with our suppliers. A key tool in this process is amfori ESG Risk Compass, which provides up-to-date information from reliable and recognised sources on the risks in the countries where our suppliers operate. This allows us to anticipate ESG risks, make informed decisions, and strengthen our commitment to sustainability.
Nauterra,
Global food company
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