Supply Chain Risk

Anything that disrupts the flow of goods to your customers can negatively affect your shareholder price and your long-term financial success.

Whether it’s a change to energy policy or regulations in a particular country, a labor supply issue, or corruption, supply chain disruptions are bound to happen to you at some point.

And the resiliency of your business depends on how much due diligence and supply chain monitoring you perform in advance of any crisis, so you can get out ahead of it and minimize your losses.

Make sure you always know exactly WHO you are working with in your supply chain.  This is the only way to avoid potential regulations violations by doing business with the wrong companies.  It also protects you from getting into bed with a company or individual who could create a serious reputational risk for you because of a bad ESG/environmental record or corruption issues.

In fact, the SEC is bringing record numbers of FCPA enforcement actions against companies who fail to complete necessary due diligence when it comes to global bribery and corruption.

Infortal will conduct regular corruption risk assessments for you on any dealings with your suppliers and subcontractors.  We can also help you create an effective risk compliance program to keep you always one step ahead of the game.

Doing deep due diligence on your supply chain and executive can also go a long way in mitigating your supply chain risk.  If you think you have it covered with questionnaires and routine background checks, think again.

Background checks of executives yield fewer than 1% of serious issues, but deeper due diligence reveals 20% of issues that could hurt your reputation or lead to exposure to misconduct, FCP fines or sanctions violations.

Similarly, thorough business due diligence will find an average of 35% more of the serious corruption issues standard investigations miss.

Without using such services from Infortal on a regular basis, you could end up with no product to sell, no inventory to stock, and no revenue to earn from supply chain disruptions.