5 common mistakes carrying out the risk analysis
The risk analysis is probably the most complex and demanding obligation within the framework of the German Supply Chain Due Diligence Act or LkSG (from Lieferkettensorgfaltspflichtengesetz). Common mistakes that should be avoided at all costs are:
- Obtaining a Code of Conduct from suppliers is not a sufficient risk analysis, but rather a measure.
- The perspective of the risk assessment is the opposite of the classic risk assessment. It is recorded and evaluated from the perspective of those (potentially) affected, rather than from the viewpoint of the company.
- The risk assessment for the LkSG must not be offset against the commercial risk assessment.
- The risk assessment must not only be recorded on the basis of country or industry-specific data. This may only serve as an initial indicator and, if in doubt, must be supplemented by a specific examination and investigation.
- A stringent documentation and linking of risk identification, prioritization, and measures for remedy or prevention is required.
Implementing the risk analysis correctly
For the correct implementation of the risk analysis, we have compiled a guide that briefly summarizes all the important aspects. In addition, we provide a free Excel tool that you can use to perform and document the risk analysis.
You can also directly view our own LkSG module
We will systemically guide you through the entire LkSG process.