For the implementation of the Supply Chain Due Diligence Act (LkSG), BAFA has presented a handout on the topic of "risk analysis". This supports companies in complying with their legal due diligence obligations.
Risk analysis is the basis of appropriate and effective risk management. Companies are obliged to observe human rights and environmental due diligence obligations in their supply chains in an appropriate manner.
The handout on risk analysis summarises the essential requirements of the law and shows practical implementation options. These include, for example, information on:
- the difference between regular and incident-related risk analyses.
- the change of perspective in risk analysis: The LkSG considers human rights and environmental risks along supply chains. This differs from business risk analyses, which typically look at the business success of a company.
- the implementation of the risk analysis: The central element for implementation is transparency along the supply chains. For this, companies must compile basic information on the structure of their own company, the procurement structure and their own supply chains and business relationships. For this purpose, comprehensible processes must be defined and their results documented.
Links:
Supply Chain Act: Handout on risk analysis now available
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