The supply chain has never been under the level of scrutiny that it is today. The risk of engaging integrity-challenged third parties is more public than ever before. Yet while many companies regularly examine the traditional and obvious set of risks when conducting due diligence on their third parties, they fail to consider integrity challenges that can have a significant business impact. Quite often this standard set of risks – which mainly focus on corruption, logistics, health and safety standards and financial stability – does not include inherent supplier integrity and compliance risks. While the standard risks are certainly important, government regulators, the media, non-governmental organisations and the public are increasingly exerting pressure on companies to closely monitor their suppliers’ integrity and regulatory compliance.
We will explore the top five integrity risks that are likely hiding in your supply chain right now and provide practical tips for establishing an integrity risk assessment programme that enables transparency into unexamined compliance and integrity risks.