Risk analysis
Increasing public pressure and legislation, such as the OECD Guidelines, now require organisations to identify and mitigate risks in their supply chains. These laws call for considerable effort to be made where due diligence and/or chain responsibility are concerned. These concern risks relating to human rights, nature and the climate: think of working conditions, workers’ rights, safe work environments and the use of scarce raw materials. Often, with a long or complex chain, it is difficult to identify these risks and implement the right solutions.
Due diligence is the process by which organisations identify, prevent, mitigate and are accountable for the management of actual and potential adverse impacts. Risks and impacts vary from country to country and from product to product. The many reports, guidelines and initiatives available often tend to complicate rather than simplify matters.
At 2BHonest, we have extensive knowledge and experience in conducting risk analysis and due diligence. Through our years of experience in the international business world, we know that translating the OECD Guidelines and UNGPs into more relatable terminology is critical. We have therefore chosen to integrate the elements of the OECD and UNGPs with the concepts of Enterprise Risk Management. Using four easily identifiable steps, we distil the complexity into a ‘risk register’, engage internal and external stakeholders and we validate the outcomes.
