Results - Red Light

Your result is within the red area

We greatly appreciate your honesty. Your supply chain is currently not secure. DEKRA has identified a very high risk of both operational disruptions and legal consequences.

There is an urgent need to investigate the governance and resilience risks within your Supply Chain.

Without immediate improvements, there is a significant high risk of losing control over your business, which can severely impact your company's bottom line and potentially lead to legal repercussions for your management team. We strongly recommend contacting DEKRA for assistance as soon as possible.

Our recommendation for you

DEKRA supports you with comprehensive risk analyses to prevent supply chain disruptions and ensure your company remains legally compliant. We use state-of-the-art AI-based analysis tools, combined with an examination of your risk management organization, your risk policy, your management systems, your risk mitigation culture, as well as your training and documentation processes.

We strongly recommend conducting a thorough analysis of your supply chain with DEKRA’s assistance to identify the most critical risks. These risks must be remedied immediately to avoid business interruptions from occurring and to ensure your company becomes legally compliant.

After successfully addressing the identified issues, we advise you not to underestimate any remaining or hidden risks. By doing so, you can enhance the quality of your supply chain operations, minimize legal and disruption risks, and maintain a competitive and fully compliant supply chain.

Background

To secure the operations of a Supply Chain, it is mandatory to cover both governance and resilience topics. Based on the results, , it appears that you have marked governance topics (“G”), resilience topics (“R”), and holistic supply chain topics (“S”) with “NO,” indicating areas that require immediate attention.

Supply Chain Governance

This involves compliance with national laws, such as Germany’s LkSG (Supply Chain Due Diligence Act), or similar legislation in countries like France, the United Kingdom, Norway, Switzerland, the USA, Australia, and others. These laws cover issues such as human rights (e.g., slavery, child-labor, labor rights requiring companies to integrate these concerns into their corporate philosophy, conduct risk assessments of human rights violations within their inbound supply chain, develop contingency plans to avoid non-compliant suppliers, and regularly report these measures to stakeholders and authorities.

Additionally, the Commission of the European Union has introduced the EU-wide “Corporate Sustainability Due Diligence Directive” (CS3D), which mandates these regulations and requires a climate change mitigation transition plan aligned with the 2050 climate neutrality goal of the Paris Agreement for all EU member states.

Supply Chain Resilience

Resilience issues are factors that can disrupt the supply chain either immediately or gradually. Risks include financial instability of suppliers, operational or cyber disruptions, and geopolitical tensions. Unlike governance issues, the analysis of these risks is not required by law and must be managed through the company’s own initiatives and responsibilities.