Prioritising suppliers for modern slavery risk assessments requires a risk-based approach that combines high-spend areas with high-risk industries, geographies, and workforce characteristics.
The goal is to focus what resources you have where the risk of harm to people is greatest, rather than where your financial risk is highest.
1. Map and Segment Your Supply Chain
1. Map and Segment Your Supply Chain
Identify Tier 1 Suppliers: List all direct suppliers, including non-procurement spend (e.g., corporate hospitality, cleaning services).
Quantify Spend: List suppliers by spend amount. Higher spend may not always correlate with higher risk, but it gives you more leverage to influence change.
Map Beyond Tier 1: Identify Tier 2 and suppliers beyond that where you can, especially for high-risk raw materials or products.
2. Apply Risk Indicators (Filter High-Risk Suppliers)
2. Apply Risk Indicators (Filter High-Risk Suppliers)
Categorise suppliers based on the following risk factors to identify which require immediate attention:
Geographical Location: Source from countries with weak labour laws, high corruption, or known human rights violations (use the Global Slavery Index or US Department of State Trafficking in Persons Report).
Industry/Sector Risk: Focus on industries known for forced labour, such as apparel, agriculture, construction, electronics, and cleaning/security services.
Workforce Characteristics:
High proportion of low-skilled or unskilled workers.
Large numbers of temporary, casual, or agency workers.
High reliance on migrant workers.
Business or Operating Model: Suppliers that rely heavily on subcontracting, outsourcing.
3. Create a Risk Matrix for Prioritisation
3. Create a Risk Matrix for Prioritisation
Combine Severity/Likelihood of Risk with Your Leverage:
High Priority (Immediate Action): High-risk sector/region + High spend (significant leverage).
High Priority (Immediate Action): High-risk sector/region + Low spend (low leverage, but high potential for abuse).
Medium Priority: Medium-risk sector + High spend.
Low Priority: Low-risk sector + Low spend.
4. Tailor Assessment Methods by Risk Level
4. Tailor Assessment Methods by Risk Level
Once prioritised, use tailored assessments rather than a "one-size-fits-all" approach:
Very High/High Risk: In-depth, site-based audits, unannounced visits, or detailed, evidence-based questionnaires.
Medium Risk: Targeted Self-Assessment Questionnaires (SAQs) focused on specific risks.
Low Risk: General, high-level screening or regular policy reviews.
5. Use External Tools and Data where you can
5. Use External Tools and Data where you can
Inherent Risk Identification Tool (IRIT): Use tools like the NSW Government's IRIT to identify risks associated with specific product categories.
Supplier Questionnaires (SAQs): Try to adopt standardised, short SAQs to gather data on policies, recruitment fees, and labour practices.
Third-Party Platforms: Use platforms and collaborations like Informed 365 to reduce your workload, give you data insights and easy reports, and automate risk scoring.
Key Takeaway: Focus first on where you have the most influence and where the most vulnerable workers are likely to be found.
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