Risk Identification and Management
Identifying and managing risk in the global marketplace is no easy task without a trusted advisor. UL provides our customers with much more than raw data. Working with a company's sourcing department or directly with suppliers, UL's Responsible Sourcing researchers gather and analyze supply chain information to develop a risk matrix complete with actionable intelligence, helping companies make well-informed business decisions.
The Responsible Sourcing team conducts supply chain risk assessments based on commodity or product type, geographic location and other risk variables. We work with international commercial and development financial institutions to conduct social, labor and environmental due diligence assessments.
Our work integrates the Equator Principles, an international credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions, and the International Finance Corporation’s Performance Standards, a socially sustainable blueprint that identifies and mitigates risk in global projects as well as international human rights standards.
UL’s Country Risk Profiles and Global Risk Index offer comprehensive insight into production processes and industry challenges that affect social compliance. These profiles and the index can help sourcing professionals prepare for both inherent and emerging social risks.
We also help businesses measure the real return on their risk-based management efforts. Our program efficacy assessment services were developed to help social compliance managers better understand their return on investment for program activities and prioritize risk management in their supply chain.
And our Responsible Sourcing program communication tools—customized Country Scorecards and Child and Forced Labor Country and Product Matrixes—help increase company-wide support for the sourcing risk management program.