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Avetta One Is Helping Companies Uncover and Mitigate Hidden Financial Risks in the Global Supply Chain

Submitted by bhupendra.rajp… on Sun, 08/14/2022 - 10:19
New Avetta Business Risk takes global approach by pulling financial information & business data from thousands of sources to drive supply chain resilience

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OREM, Utah, and HOUSTON—Aug 14, 2022—Like finding a needle in haystacks all over the world, Avetta®, the leading provider of supply chain risk management (SCRM) software, is helping companies uncover and mitigate hidden financial and business risks in their global supply chains. New Avetta Business Risk in the Avetta One platform goes beyond checking a credit score or financial report, it closely monitors suppliers’ credit strength, financial health, legal proceedings, adverse media, political sanctions and more—all in real-time.  

Nearly 48% of all risk events started from supplier financial risk, making it the highest risk factor for the fourth year in a row. 

Avetta Business Risk is more than a credit score or a single financial measure in one country. It pulls financial information from 200 data and 30,000 media sources globally, providing information on financial health, payment history, liens, bankruptcies, legal proceedings, media reports of criminal activity/investigations and sanctions data. The data is monitored and updated in real-time.  

The system alerts companies when a risk factor changes with a current supplier and provides the most comprehensive way to evaluate a potential supplier’s business and financial risks during the procurement process. The Avetta platform also enables organizations to source new suppliers with lower risks to ensure business continuity and supply chain resilience. 

The Avetta One™ Platform is a single-source solution for managing operational, reputational and regulatory compliance risks. The platform reduces risks in safety, liability, sustainability, workforce, cybersecurity and financial areas for corporations, suppliers, contractors and their workers. 

“Supply chain risk is at an all-time high while risk tolerance is at an all-time low, particularly as many anticipate an economic downturn,” said Taylor Allis, chief product officer at Avetta. “The addition of Business Risk, along with other recent updates around ESG, worksite safety and subcontractor management, makes Avetta One the industry’s only comprehensive, enterprise risk supply chain management solution.” 

Avetta One delivers an unprecedented view of risks through multi-risk analytics, supplier risk trends and supplier performance benchmarking. The platform uses almost two decades of data from millions of collected data points to provide real-time views on risks and delivers alerts on deviations from baseline measures. The analytics software includes customizable, interactive dashboards to gain insights that help build supply chain confidence. 

Global Approach to Financial Risk 

Avetta Business Risk is powered by Creditsafe, combining global financial data from thousands of resources around 46 risk factors with Avetta’s comprehensive risk profiling system. It provides both a business specific risk score and a global business risk grade. Clients can drill down on any specific risk factor to receive more information when making procurement and supplier decisions.  

Avetta Business Risk provides key credit and financial information on nearly 400 million companies in 165 countries with global, real-time data monitoring and alerts to immediately make educated procurement decisions for different contractors or vendors. 

To learn more about Avetta Business Risk and Supply Chain Management Multi-Risk Platform, visit Avetta’s website to view the Supply Chain Survival Toolkit.  

Addressing other hidden risks 

As part of the Avetta One Platform, Avetta has also bolstered companies’ abilities to view and manage hidden risks in safety, liability, sustainability, workforce and cybersecurity over recent months with major enhancements to its platform. These improvements ensure companies have a resilient and safe supply chain in all areas.  

The recent additions include:  

  • A powerful Environmental, Social and Governance (ESG) risk mitigation solution that allows companies to reach their sustainability goals faster and with more confidence. The new solution provides a holistic view of ESG status across the entire supply chain. Avetta is the only supply chain company to provide an innovative ESG scoring system that considers individual company goals and global standards in 20 industry trades. 

  • Workforce Management, the most comprehensive solution to onboard, profile, verify, train and manage site access for supply chain workers. 

  • Achieving four major ISO standards and the SOC 2 Type II certifications 

  • Integration with Coupa’s Business Spend Management System. With the Coupa integration, clients can see Avetta compliance status alongside other supplier information within the Coupa Risk Aware module, allowing companies to create custom workflows, such as declining purchase orders from non-compliant suppliers.  

  • Subcontractor Management, giving clients visibility into their connected suppliers’ subcontractors – both high-spend and low-spend contractors – that may pose additional costly risks when coming onto a client’s site. 

About Avetta 

Avetta SaaS platform helps clients manage supply chain risk and their suppliers to become more qualified for jobs. For hiring clients in our network, we offer the world’s largest supply chain multi-risk management network to manage supplier safety, sustainability, worker competency and performance, business and financial risk. We perform contractor prequalification and worker competency management across major industries, all over the globe, including construction, energy, facilities, high tech, manufacturing, mining and telecom. 

For suppliers in our network, our audit and verification services help lower their safety incidents rate by 29%. As a result, nearly 50% of members find additional job opportunities within the first year of joining. In addition, our suppliers receive privileged access to the Avetta Marketplace, where dozens of partners offer special discounts for business services like insurance and work gear. Avetta serves 500+ enterprise companies and 125,000+ suppliers across 120+ countries. 

Visit https://www.avetta.com/ for more information. 

PR Contact: 
SnappConner PR 
Mark Fredrickson, +1 801-806-0161 
[email protected] 

Avetta 
Kendra Lamer  
[email protected]   

6 minutes
Avetta Marketing

7 Ways to Keep Supplier Problems from Becoming Yours

Submitted by s.nelson on Mon, 08/01/2022 - 20:25

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7 Ways to Keep Supplier Problems from Becoming Yours

It’s vital to assess the financial health of any supplier or contractor you hire to ensure their financial issues don’t become your own. In fact, one report found that supplier financial risk represented nearly 48% of all business risk events in 2020.

Many companies run a credit check on suppliers but may not do much beyond that. But unfortunately, there is a lot of critical information missed in a one-time credit check that could spell big trouble for your bottom line. 

Here are seven reasons why it’s essential to conduct global, real-time, continuous business and financial monitoring for your entire supply chain—plus how to do it successfully.

1. Increase Business Confidence

If even one critical supplier fails to deliver on their contract, it can lead to a costly supply chain disruption. In the same report highlighted above, 60% of organizations said that these disruptions caused their financial performance to drop by at least 3%.  

To minimize financial risk, companies should take proactive measures before work begins. By assessing the economic stability of any partner you hire (and continually monitoring for any changes to their financial health), you can ensure you’re bringing fiscally responsible, stable resources into your project and ultimately, your organization.  

2. Unreliable Payments 

When suppliers get behind on their payments, they could be putting the work they do for you at risk. Their creditors could repossess assets that you paid for or file judgments against your joint assets. Unstable suppliers can’t make good on their promises due to a range of financial issues, such as: 

  • Bankruptcy
  • History of late payments
  • Legal proceedings

While a credit check can shed some light on their stability, these are limited in scope. Traditional credit scoring is country-specific, meaning scores don’t detect international financial scores. It would help if you had more than a one-time analysis, as financial indicators can change regularly, opening up your company to constantly evolving risks.

3. Mitigate Skills/Expertise Risk

One supplier might have the exact expertise that you need. However, what would happen if you discovered that they couldn’t meet their contractual agreements due to financial instability?  

If you’re putting all your business eggs in one proverbial basket, you could find yourself empty-handed if a crisis occurs.  

A financial risk analysis can help you determine where to diversify your supplier base. This way, you can source your specialized goods or services from several different places, which improves your operational agility and responsiveness. 

4. Avoid Legal Issues

When a supplier fails to keep up their side of a deal, the resulting aftermath isn’t just messy and uncomfortable. It can also turn litigious.  

Even if you aren’t directly involved in a supplier’s legal issue, it can stain your business through association. And consider the risk of one of your suppliers losing a big lawsuit or being hit with a significant penalty. Those financial consequences could make their way back to you in the form of delayed payments, supply chain disruptions, or breach of contract.  

5. Reduce Delays and Save Time

To maintain a steady flow of goods and services, you need suppliers that are trustworthy and capable of meeting demand. Even one weak link can disrupt core business processes, creating a domino effect throughout your entire supply chain.  

Once you’ve verified that your suppliers are financially stable and low-risk, you can rest assured that any additional costs or delays you incur should be minimal. When you’re forced to scramble to replace a critical but unreliable supplier, it reroutes your plans and makes managing projects downstream difficult.  

6. Improve Customer Service

When you complete your project deliverables on time, your company isn’t the only one that benefits. This commitment to quality also delights your customers, who have grown increasingly used to rapid-pace delivery times and premium goods.  

Taking time away from your day-to-day workflows to replace high-risk suppliers adds time and expense to your solution. If you can eliminate this step, you can operate on a leaner business model that makes your current clients happy and attracts the attention of new and repeat business. 

7. Avoid Reputational Risk

According to one study, businesses with a bad reputation will pay around 10% more for each new hire. So is your reputation saving or costing you money? 

If you hire an unstable supplier that becomes embroiled in a financial dispute, then you’ll feel the brunt of the impact. Not only are there fines and penalties associated with these actions, but there’s also the risk of reputational loss any time the following is mentioned alongside your name: 

  • Sanctions 
  • Negative media reports  
  • Criminal investigations  
  • Lawsuits and legal proceedings  

Even if you’ve taken pains to keep your own books clean, those efforts won’t matter when the headlines splash across the news. To keep your reputation and image intact, double-check each supplier’s financial risk factors before adding their name next to yours.

How to Effectively Assess the Financial and Business Risk of Each Supplier

Global supply chain leaders should monitor financial and business risks on an ongoing basis. An essential part of that process is checking the credentials, background, skills, and financial security of any supplier you bring on board.

Instead of isolating these different factors and reviewing them separately, you can invest in a comprehensive solution that gathers and analyzes this critical data for you. From poor payment history and liens to bankruptcies, media reports, and fluctuating credit scores, these platforms help you find and act on critical risks early on in your supplier relationship.

Our new Business Risk feature gives you a global, real-time view into every aspect of your suppliers’ business health and financial health, including continuous monitoring, so you always have the most up-to-date information. Learn more about how this feature works and the benefits it can provide.

If you’d prefer a more hands-on approach, you can also request a demo to try the tool out for yourself!

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7 minutes
Avetta Marketing

Job Hazard Analysis is a Smart Move for Safety and Business

Submitted by s.nelson on Mon, 08/01/2022 - 14:47

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Job Hazard Analysis

On average, more than 100 workers die weekly on U.S. job sites. At the same time, around 2.7 million non-fatal workplace injuries and illnesses occur annually. Many of these incidents stem from a failure to define, establish, and follow necessary safety procedures at work. In addition to full-time employees, these statistics also include third-party contractors and suppliers.

A job hazard analysis (JHA) can help your organization identify potential job- or task-related risks before they occur and are critical to operating a safe workplace. A company will conduct a JHA to identify potential hazards on job sites and create a plan to mitigate those hazards. Company supervisors, project managers, foremen, and workers can use Job Hazard Analysis to eliminate potential hazards.

What Is a Job Hazard Analysis?

A JHA is critical to operating a safe workplace and a key component of a company’s health and safety program. Companies conduct JHA’s to identify potential hazards on job sites and then create a plan for supervisors, project managers, foremen, and workers to eliminate potential hazards.

Why Conduct a Job Hazard Analysis?

A JHA protects contractors, suppliers, workers, and the company and prevents work-related death, injuries, or illnesses by eliminating or controlling identified hazards. By ensuring workers have the proper training, equipment and supplies to do their jobs safely, a JHA can be used to train employees on the hazards associated with a task and appropriate countermeasures to take. In addition, let’s take a look at why this is a wise business practice.

Keep Incident Rates Down

A JHA helps your team members understand the exact safety protocols to follow any time they perform work. This can lower the number of workplace incidents that can occur on your job site, protecting your reputation and your bottom line.

Reduce Incident-Related Costs

According to the National Safety Council (NSC), workplace accidents can cost an average of $47,000 each, while a workplace fatality costs around $1.2 million. Overall, the direct cost of work injuries totals around $164 billion annually.

It’s more effective and economical to prevent workplace accidents before they occur. A JHA allows you to establish protocols that cater to your specific company-based workflows.

Build Your Reputation & Credibility

A JHA helps you build credibility with current and future clients and suppliers. When evaluating partners, these stakeholders want to know that your company equips its workers with the proper on-site tools required to mitigate potential risks.

Improve Work Methods

During a JHA, you may uncover bottlenecks or other pain points impeding workplace productivity. As you design ways to make these processes more secure, you can eliminate those obstacles and create newer, better methods.

5 Steps to a Successful JHA

 

Five critical steps can help your organization conduct an effective JHA to ensure safer and more effective worksites. Let’s break them down.

1. Involve Your Employees

As you develop a JHA for a particular project or worksite, it’s important to get firsthand insights from the on-site workers who actually perform the task, which can include both employees and contractors.

While supervisors and project managers may have their own inputs, you need to accurately document the work involved at each step. The only way to achieve that level of understanding is to collaborate with the workers directly.

By involving your workforce in this way, you can ensure your strategy includes the appropriate protocols that everyone needs to stay safe. This prevents oversights and improves quality results, but most importantly, it assures employees that they play an active and visible role in your company’s health and safety initiatives.

2. Segment Tasks By Risk Level

Hundreds of individual workflows could occur during a particular project or job. Tackling all of them at once can seem daunting, so start with the highest-risk tasks first.

List all the most dangerous jobs at your worksite, with vulnerabilities that carry the most severe consequences. Look for job and process issues that cause concern:

  • High number of injuries or illnesses
  • Indicators for potential injuries or illnesses
  • Hazards and damage due to human error
  • New contractors, suppliers, and workers coming on site
  • Newly implemented process
  • Areas of change management
  • Overly complex processes and procedures

Using this approach, you can prioritize and ensure critical areas are better protected and supplied with the necessary resources.

3. Break Jobs Into Tasks

Once you’ve completed the initial analysis, break down each selected job into defined, individual tasks. As you do so, keep the basic sequence of the tasks intact. This way, you can address hazards in the order your employees will encounter them.

While it’s essential to be thorough, there is a limit to how far you should break down each job. If possible, try to limit it to 10 individual tasks. Enlist the help of a direct supervisor or an employee very familiar with the job to identify and record these tasks as performed.

4. Consider All Hazards

In each job, there may be easily identifiable hazards. But, then, some are a little harder to find. So, to make sure you identify all the risks, consider every possible problem.

This includes looking for tasks that could cause your employees to fall, trip, perform a dangerous error, or suffer another form of injury. It also means looking at the tools and equipment they’re using, as well as the overall environment they’re working within. Finally, be sure to note any possible instances of:

  • Toxic/hazardous substance exposure
  • Harmful radiation
  • Electrical hazards
  • Extreme temperatures
 

5. Establish Preventative Measures

The final stage in your JHA is setting preventative measures to help control potential dangers. Once you’ve chosen your jobs, broken them into tasks, and identified your hazards, it’s time to set these parameters.

To help with this step, the National Institute for Occupational Safety & Health (NIOSH) offers five options for workplaces to deploy:

  • Option 1: Elimination: Remove the hazard completely
  • Option 2: Substitution: Replace the hazard immediately
  • Option 3: Engineering controls: Redesign the work area to eliminate or reduce the hazard
  • Option 4: Administrative controls: Modify workflows around a hazard to reduce risk
  • Option 5: Personal protective equipment: Use physical protection to safeguard employees
 

The Benefits of a Safety Compliance Platform

Your safety and compliance data must be centralized and easily accessible to confidently manage projects, work orders, safety requirements, suppliers, and workers. Intuitive risk management systems can streamline your JHA efforts and seamlessly integrate with other core business data to drive decision-making and reduce risk.

Avetta One offers end-to-end contractor safety tools, from supplier pre-qualification to worker-level qualifications to worksite safety. Request a demo to learn more and try the tools for yourself!

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Avetta Marketing

9 Ways To Manage Hidden Subcontractor Risk

Submitted by bhupendra.rajp… on Mon, 08/01/2022 - 10:02

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9 Ways To Manage Hidden Subcontractor Risk

Fifty-nine percent of supply chain disruptions originate with suppliers that your suppliers hire. The larger your workforce spans, the more difficult it can be to stay on top of your supply chain. Beyond keeping track of the suppliers you hire directly, many of your primes will subcontract work too, creating multiple tiers that open your company up to a greater degree of risk.

If you have subcontractors in your supply chain, it’s important to have visibility into every aspect of their work, so you can manage them effectively. Today, we’re sharing how to achieve this level of oversight, as well as other best practices for subcontractor management.

Best Practices for Subcontractor Risk Management

Without proper screening protocols in place, it can be difficult to discern if a sub possesses the skills, qualifications, and experience required to perform safe and compliant work. Rushing ahead without a thorough review stage, or relying on your primes to handle subcontractor qualifications, exposes your organization to risk and potentially disaster.

To mitigate these risks, let’s review a few of the key steps to take to protect your business throughout the entire supply chain.

Maintain Visibility Into Lower-Tier Providers

Invest in tools that allow you to achieve deep oversight into all of the contractors in your supply chain, even if your organization wasn’t the one that hired them.

Perform Background Research

Conduct a background check using an industry-standard program, but don’t stop there. In preliminary interviews, ask questions about each sub’s relevant business experience, as well as the methods and techniques they use to comply with industry laws, codes, and professional standards.

Check License, Bonding, and Insurance

Ensure every sub in your network is licensed and bonded, and also meets your insurance requirements for your prime contractors.

Performing a thorough insurance check guarantees that subs don’t slip through the cracks. Don’t just take the word of your prime contractors and assume that your lower-tier subs are also insured. Validate these qualifications before allowing any teams to begin work.

Document All Subs Working For Your Company

By effectively documenting your subcontractor relationships and following sound business practices, you can prevent many costly mistakes and operational setbacks. While there isn’t a single risk management technique that can guarantee you’ll bypass every roadblock, you can establish a firm foundation by investigating and carefully organizing all communications from the beginning.

Managing Subcontractor Risks Across the Supply Chain

Risks can occur at any point along a supply chain, especially if there are lower-tier subcontractors involved. A centralized management platform can help you maintain real-time visibility into all activities, so you can identify potential issues and correct them before they occur.

In addition to implementing the right software, a solid risk mitigation strategy can help you protect your supply chain from fraud, non-compliance, and other red-flag issues. Here are critical items that should be part of that strategy:

1. Identify and Prioritize Risks

Researchers recently found that 49% of supply chain leaders capture real-time data insights and immediately act on them, giving them a more holistic view of their supply chains and a closer understanding of customer demands. When you know what might happen in your supply chain, it’s easier to effectively deal with any disruptions if they occur. Before you build out your team and bring contractors on board, take the time to break down every step of your supply chain into individual workflows.

Identify what could go wrong at each touchpoint, taking both internal and external risks into account. Specifically, look for weak areas that could possibly affect key areas of your business, including pricing, quality, delivery, and reputation.

Once you’ve identified those risks, you can document and prioritize them based on their likelihood of occurrence, as well as their resulting impact. Supply chain management platforms with built-in data analytics can help you gather these details in a matter of seconds, allowing you to reference historical data or generate forecasting reports to predict the probability of risk occurrence.

2. Create a Culture of Risk Awareness

Everyone in your company should understand why being aware of risk is important, and the role that they can play in it by reporting it without reproach.

Make sure your entire workforce has access to the critical information they need to mitigate risk within their own departments. This includes:

  • The common risks and challenges affecting your supply chain
  • Best practices for managing supply chain risks
  • Training resources on how to use risk-assessment software

When this knowledge is readily available, it empowers employees to be proactive and responsive. They’ll know the specific steps to take if they notice a risk down the pipeline, and can prevent known issues from occurring. They’ll also be able to maneuver internal and external changes with minimal disruption.

3. Invest in Liability Insurance

When researching insurance options for your company, don’t scrimp on insurance. The right policy and coverage can protect your organization against a range of supply chain risks, ensuring that one weak link doesn’t lead to widespread disaster.

For instance, insurance can protect you from the financial and legal liabilities that could arise if your company is unable to honor a contractual agreement with a subcontractor and vice versa. In addition, it can also shield your bottom line and prevent long-term losses if a supply chain disruption occurs.

4. Confirm Supplier Stability

When hiring new suppliers, always make sure to do your due diligence before signing them to a contract. This sets the stage for a successful working relationship and helps minimize your vulnerability to risks. Make sure you take this same step for your prime contractors as well as any subs conducting work.

As you do, pay special attention to their financial reports. A supplier that’s reputable, viable, and financially stable will protect your company’s bottom line. Otherwise, you could be left picking up the pieces if they suddenly go bankrupt.

Perform these evaluations early in the review stage, so you can eliminate suppliers that are obviously too risky or don’t align with your goals. This is one of the easiest and most effective ways to reduce supply chain risk.

5. Perform Supply Chain Audits

Prequalifying all your contractors and subs is important, but don’t stay satisfied with the status quo. Perform regular supply chain audits to continually monitor for evolving risks.

These audits can also help you build better and stronger business relationships with your suppliers. As you examine each touchpoint, you’ll find room to improve in certain areas, including health, safety, and ESG.

Lower Risk, Stronger Supply Chain Performance

A central supply chain management platform can help you stay up-to-date on every aspect of your operations, from tier 1 suppliers all the way to the subs of their subs. When you fail to monitor your lower tier suppliers, you leave an enormous amount of unknown risk lurking in your supply chain.

Avetta One offers visibility and risk management for your entire supply chain, including prime contractors and subs. To learn more and see our tools in action, request a demo today!

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Avetta Marketing
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