Risk management

1.1 | Prioritize Supply Chain

The GMAP Tool helps inform strategy development by identifying which supply chains have high associated environmental and social risks. This information should be used to prioritize your company’s supply chains for further risk management.

In many cases, further prioritization activities should be based on supply chains in which the company or trader purchases large volumes, where multiple commodities from a single supplier or aggregator are purchased, and nonfungible commodities.

1.2 | Assess Company Leverage

A logical next step after prioritizing supply chains for developing risk management strategy is a leverage assessment. Leverage is the ability of your company to affect change in the practices of your supplier(s) or subsequent upstream supply chain. Prioritization activities inform supply chain mapping and institutional mapping, which form the basis of your company’s leverage assessment. Institutional mapping can be used to identify points of transformation or potential roadblocks to leverage. Leverage can be increased or decreased by buyer influence or supplier influence and companies with increased leverage can have greater market influence.

1.3 | Develop Appropriate Management Strategies

Utilize the prioritization activities and leverage assessments to define the best ESMS for your company. Strategies should be Specific, Measureable, Achievable, Relevant, and Time-bound.