Knowledge is your strongest shield against the volatility of hidden risk. With so much potential damage on the line, understanding what to look out for and what practices to avoid is paramount to maintaining good standing with your organization's stakeholders and protecting your company from the suppliers' risks inherent to the COVID-19 situation.
- Focus the response team to facilitate information flow with upstream and downstream partners, and inform customers who will be impacted.
- Map criticality of sourced materials to high-value products and revenue streams. Identify the components with the highest impact on revenue.
- Review contracts with key suppliers to understand liability in the event of supply shortage.
- Determine business exposure by identifying current and buffer inventory, building tier-transparency and short-term action plans.
COVID-19 rapid supplier risk assessment
- Risk segmentation and associated criteria should be developed to group suppliers in a manner that is in alignment with the defined risk tolerance and profile to clearly delineate risk severity levels, from an operational, financial, and compliance standpoint.
- Viability risk monitoring provides powerful oversight with a dashboard that analyzes and projects vulnerabilities across all relationships, so you can act quickly, through receiving timely insight into the risks facing your company.
- Contract performance management solution leverages holistic, cross-functional advisors and technology to provide visibility into where value leakage is occurring, and the steps being taken to correct it.