riskmethods Risk Assessment™ integrates supplier surveys into comprehensive risk monitoring, to help master the special challenges in the 2022 purchasing year
MUNICH and BOSTON (January 27, 2022) – riskmethods, a global leader in supply chain risk management (SCRM), today announced the launch of riskmethods Risk Assessment. Currently, purchasing and supply chain managers face enormous challenges. Supply chain disruptions and supplier insolvencies are on the rise, and the upcoming obligations of global and regional supply chain laws must be addressed. To identify all risks and be able to take countermeasures at an early stage, companies need to consolidate a large volume of information into a holistic risk assessment. To do so, they need to use every resource available. Here, one valuable source of information is the suppliers themselves, who can be easily identified and surveyed through riskmethods Risk Assessment. This now includes automatic integration of this information visualized into comprehensive risk profiles, for the best possible risk monitoring.
Trends in the 2022 purchasing year
Purchasing and procurement must be prepared for a turbulent 2022. Supply chain disruptions are growing relentlessly, along with supply shortages for raw materials and components, exacerbated by the impact of the ongoing COVID-19 pandemic. Many suppliers are in distress, SMEs and partners need to be supported, and new suppliers need to be vetted and evaluated. Other risk factors include increasing cybercrime, natural hazards, and trade conflicts. As a consequence, enterprises increasingly demand that their purchasing management enable greater transparency and resilience in their supply chains. Otherwise, companies face emergency costs and profit losses in the millions.
At the same time, pressure is growing from demands for meeting compliance and sustainability requirements. National and international supply chain laws demand action, as human rights violations and environmental infringements become punishable by law. To ensure reliable and trustworthy supply chains, companies must monitor and assess all types of risks in their supplier networks, so they can take countermeasures early.
Critical risk data resides with suppliers
“Companies are realizing that they do not have all the information they need to assess supply chain risk, and that they can only address the many different types of risks in isolation or incompletely. They must now either introduce risk management, or improve their existing practices, which are often inadequate. Active collaboration with suppliers plays a key role here. This is because suppliers have critical information and details about their location and operations. In turn, they possess information about the suppliers they have who are relevant to the company’s supply chain. Only when you can automatically integrate direct supplier information does a holistic risk picture emerge,” says Heiko Schwarz, CEO and founder of riskmethods.
riskmethods generates a 360-degree view of all risk data, and aggregates this into over 100 risk indicators from the following data sources: structured data (from regulatory, commercial, or specialty data providers), unstructured data (curated from millions of global media news sources using artificial intelligence), internal enterprise risk information from ERP and supplier management systems, and data from supplier surveys, now available through Risk Assessment.
Compared to existing survey tools, Risk Assessment enables the automated integration of survey results into a holistic risk assessment. This creates a seamless database for optimal risk monitoring within riskmethods supply chain risk management solution that is visualized in a comprehensive risk scorecard, which would be impossible to generate using time-consuming manual processes reliant on spreadsheets.
Automated supplier monitoring
“With riskmethods Risk Assessment, automated risk surveying and assessment of suppliers can be flexibly applied for a wide range of key topics and response forms. The solution enables the development of specific risk criteria and individual questionnaires, provides the data in the required format, and integrates the survey results directly into the risk profiles of your business partners. Major benefits arise through automation. This simplifies supplier qualification and continuous monitoring, improves data accuracy, and reduces time spent on manual data entry,” says Bill De Martino, riskmethods Chief Product Officer and Managing Director Americas.
With riskmethods Risk Assessment, enterprises can verify the risk alerts generated by the riskmethods solution, as well as any suppliers affected, by using situation-specific questionnaires to resolve possible disruptions in a timely manner. In addition, future suppliers can be efficiently qualified through customizable questionnaires. When monitoring existing business relationships, due diligence requirements can be met with regular or ad hoc surveys. Suppliers also benefit. The easy-to-use interface simplifies collaboration. They save time and resources and, if needed, they can call on experts within their company to answer survey questions.
riskmethods, a Sphera company, empowers businesses with a solution to monitor, identify, assess, and mitigate supply chain risk. By using artificial intelligence, riskmethods helps businesses automate and accelerate threat detection, enabling them to gain competitive advantage with a well-managed approach to meeting customer demands, protecting reputation and reducing total cost of risk.
For more than 30 years, Sphera has served over 6,700 customers and a million-plus users in 80 countries to help companies keep their people safe, their products sustainable and their operations productive. Learn more about Sphera at www.sphera.com. Follow Sphera on LinkedIn.
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riskmethods was acquired by Sphera in October 2022. This content originally appeared on the riskmethods website and was slightly modified for sphera.com.