The starting point of our risk management is the global risk landscape. It equals the usual approaches of Corporate Sustainability Due Diligence Regulations which require companies to conduct an abstract risk analysis on country level. In our global risk landscape you find an overview of all countries and their risk scores for all 20 retraced risk factors. Furthermore, we included:
the sources from which we derive the risk scores for each country
the inital source score
the translation into the retraced risk score.
The global landscape is the starting point to any risk management as you need to understand if certain risk factors are high in the country of your network partners.
How to navigate the global risk landscape?
On the first glance, the landscape shows a country score for each risk factor based on 3-7 data sources. The sources are public indices, acclaimed databases and regularly published reports focusing on the fashion and textiles industry and its impact on society and planet. These risk scores result in the average country risk.
You can access all this information through first having a glance at the first table and map when accessing the global risk landscape:
By clicking on a country in the first table, you can navigate to the more detailed risk factor overview of that country:
You can access the information about which data sources were used in calculating the score for each risk factor in clicking on the risk factor. This opens up a sidedrawer showing:
the risk score
the definition of the risk factor
the list of data sources, which are clickable and lead you to the source's website
the initial score from the source
publication date
the translation into the retraced risk score.
The color grading for the risk scores are:
1-1.80: dark Green (#8DC487)
1.81-2.60: light Green (#C4D7A4)
2.60-3.40: Yellow (#F7D985)
3.41-4.20: Orange (#F1AA77)
4.20-5.00: Red (#E86262)
Now the risk landscape provides additional context to help you better understand how your suppliers compare to country-level risk benchmarks.
For each country, you can now see:
The country baseline risk value for each risk factor.
The average risk value across your network partners in that country.
This makes it easier to assess whether the companies you work with perform better or worse than the overall country risk profile.
When your network partners' average risk value differs from the country baseline, both values are displayed side by side. Directional arrows indicate whether your network average is above or below the country benchmark, helping you quickly spot areas where your supply base stands out.
To make these insights easier to interpret, we've also added a tooltip that explains the displayed values and comparison indicators
Be aware of the difference: The gross risk in the global risk landscape is based on all the gross risks defined for that country, while the gross risk in the retraced standard assessment is based on the average of the gross risks for the risks in the template for that assessment. For example:
Global Risk Landscape - CHINA
Country Gross Risk - CHINA - Supplier 123
Why are certain risk factors missing data?
You may come across countries for whom certain risk factors do not have a retraced score. Reason for this is that in some countries and for some risk factors there is lacking research and therefore no data available. This might be the case for a country in the Global South where there is just no capacity to cover certain research topics. It could also be the case for a country in the Global North which covered a risk factor extensively and might have solved this risk area like child labor in Germany. We treat both cases the same since as there is no data we cannot derive a risk score.
Note that the risk landscape tab is purely informative and presents the risk factors' scores on country level and their sources. There is no action required from your side in this tab.
Next, move to the risk rules tab to set up your assessment template.
Enhance your decision-making and prepare your business with our Risk Management module. Contact our Customer Success team at [email protected] to learn more and get started!
Or if you have further questions regarding the logic behind the Risk module, reach out to [email protected] or [email protected]