- CASE STUDY
Modern Slavery Risk Assessment Methodology
In Australia, the recently enacted Modern Slavery Act of 2018 mandates annual reporting of potential modern slavery risks in the organisation’s operations and supply chains. Companies with revenue of $100M or greater are required to report identified risks, actions taken and the effectiveness of those actions. Although the client had an established key data capture tool, they then needed an overall methodology for assessing supply chain risks and actioning risk assessment outcomes.
This client has worked with multiple parties to develop a Modern Slavery Self-Assessment Questionnaire (SAQ) for suppliers to complete. The SAQ is designed to; support the identification of modern slavery risks, foster collaborative efforts between suppliers and organisations to address those risks, improve transparency and identify areas for further due diligence.
ArcBlue started with a modern slavery risk assessment methodology based on SAQ responses and other data. This led to the development of a due diligence process for high-risk suppliers, i.e. a set of business guidelines for a response plan captured in a handbook. ArcBlue then developed a reporting tool, MSx (based on the mybuy platform), for tracking supplier responses and assessment outcomes, interfaced with SAP Ariba, and then assisted with the rollout and implementation for users.
The MSx platform provides the client with timely, robust and effective reporting of supply base modern slavery assessments. More importantly, the risk assessment methodology guides the Procurement team and end users on the right actions to take in the case of medium or high-risk assessment outcomes. An effective framework for engaging with suppliers and resolving potential risk areas serves to uplift the ESG performance of all partners in the supply chain.
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