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2020 Corporate Responsibility Report

Risk monitoring

In Procurement, we work with a comprehensive supplier risk monitoring scheme. subjecting our existing supplier basis to an extended risk analysis. In the first step, we assess the risks associated with individual suppliers based on three criteria:

  • Procurement volume
  • Critical components
  • Dependence on suppliers

Depending on the classification, we then carry out either basic or active risk monitoring:

  • Basic monitoring: An external auditing company evaluates all suppliers according to financial, CSR and compliance criteria, and gives them a score.
  • Active risk monitoring: Suppliers exhibiting the greatest risk are also monitored with regard to other global risks (e.g., natural disasters, political risks). Our aim is to address deficits together with the supplier and take appropriate corrective action. Only if no solutions are possible do we have to cut ties with suppliers.