Extended supplier networks can be susceptible to several types of risks in the form of financial viability, liability, and cybersecurity. Managing and tracking the hidden liability risks and financial health of every supplier in complex supply chains that extend across borders can be a difficult target to achieve. And, when it comes to suppliers’ financial failure, a single instance is one too many. This makes tracking and managing liability risks and supplier financial health a priority for modern enterprises today.
Similarly, the indispensability of cyber resilience in modern, complex supply chains also cannot be overstated. Without proper cybersecurity measures and information protection controls in place, companies risk millions of dollars’ worth of intellectual data and confidential company information.
The Importance of Constantly Monitoring Liability Risks, Supplier Financial Viability and Cyber Resilience
The Importance of Constantly Monitoring Liability Risks, Supplier Financial Viability and Cyber Resilience
55% of organizations feel that supplier insolvency is one of the leading financial risk originating from the supply chain.
Supplier financial risk represents nearly 48% of all the risk events recorded in 2020.
In 2020, supplier financial risk caused product release delays to increase by a whopping 302%.
The global average cost of a data breach by country or region is a staggering $3.86 million.
Data breaches now cost companies $4.24 million per incident on an average.
An estimated two-thirds of supply chain data breaches are a result of supplier or third-party vulnerabilities.
With 40% companies lacking complete visibility of their extended supply chain, the risks associated with insurance liability gaps in the supplier network can be a major disruptive factor.
Disruptions within supply chain can lead to a 3% or more drop in your financial performance.
Avetta One
An end-to-end solution for mitigating financial viability, viability and cybersecurity risks
Evaluation of Supplier Groups
Whether you’re concerned about one supplier or all of them, the Avetta Experian integration makes analyzing your supplier base easy. During the process, each supplier receives specific ratings and key metrics unique to their business.
Filtering of Risky Accounts
With the data at your fingers, it’s easy to include supplier financial health into the qualification process. Keep your standards high and your risks low by building appropriate compliance rules into your supplier management plan.
Automated Reviews
The financial data collected by Experian is refreshed at regular intervals, so you can feel confident you’re receiving an up-to-date look on all of suppliers.
Real-Time Insights
While a quick snapshot is nice, we understand the need to expand your visibility beyond just a few scores. Detailed reports are available on demand in case the summary scores do not provide the insights you are looking for.
End-to-End Coverage
Proactively manage risk by ensuring your company is covered and suppliers have sufficient insurance coverage.
Complete Support
Avetta does the heavy lifting of collecting, verifying, and monitoring supplier insurance for an efficient risk management process.
Granular Visibility
Expose the insurance gaps that exist within your supply chain and take the necessary actions to protect your company from unnecessary liability risks.
Stringent security controls
Leverage our supplier risk assessment off¬ering that evaluates vendor adherence to critical security controls like the use of communications protocols (email, FTP), data management, and IT system management.
Cybersecurity risk assessment
Schedule cyber assessments at customized intervals and flag any cyber risks to trigger notifications and risk workflows. Take a proactive approach towards cybersecurity, by provisioning for cybersecurity audits through trusted partners to create a safe and secure environment for the growth of your business.
Identify threat vectors
Assess your suppliers’ digital security and risk management practices to identify vendors that do not have adequate security measures.
Training
Ensure that your suppliers have been trained to use sensitive information and protect it with appropriate tools.
Our Approach
The Experian integration captures supplier data in their system for analysis. Results are then sent back to the Connect Financial Risk Tab and Financial Health dashboard for your easy viewing.
Suppliers are given a Financial Stability Risk Score (1-100) that indicates their likelihood of defaulting on financial obligations or going bankrupt.
Suppliers also receive an Intelliscore Plus rating that identifies the suppliers who may be slow to pay but are likely to follow through on their financial commitments.
Any liens, judgments or bankruptcies from the supplier are also displayed on the Connect dashboard.
Testimonial
The greatest benefit of the Avetta API is simple: Automated Risk Mitigation. We are able to prevent continued use of suppliers that are non-compliant with our business rules, based on the daily feeds from the Avetta platform.
Director of Strategic Sourcing, BlueStream
As Certificates of Insurance are uploaded to our online platform, Avetta uses a blend of technology as well as insurance specialists to validate insurance types, limits, and any specific verbiage per your request.
Avetta’s Professional Services team can assist clients to benchmark their requirements against common industry best practices. Avetta’s experts have knowledge on insurance lines, limits and what is statutory and common globally and can provide a consultative approach in how the insurance requirements are set up.
Email alerts are automatically sent to suppliers before and after their insurance policies expire, giving them the opportunity to make timely updates and remain compliant.
Any change in supplier coverage is monitored and communicated directly to you. Cancellations, reductions in coverage, as well as changes to verbiage are visible to you.
Get a complete picture of your supply chain’s insurance coverage. Quickly identify gaps and make changes to proactively mitigate risk. Clients can access this information through Analytics dashboard and reports and can filter and slice the data in many ways to evaluate and determine where there could be potential risks as well as areas of non-compliance.
Testimonial
Supplier Prequalification is flexible and configurable. We can define our own compliance criteria and quickly see which contractors are qualified, which are not, and why.
Safety Director, SBA Communications
Manage Risk for Any Supplier
Built with complex supply chains in mind, Avetta organizes and keeps all of your supplier documentation up to date, accurate, and available at any time.
With Avetta One, you get the opportunity to leverage a single unified platform for all supplier evaluations spanning health & safety, financial viability, sustainability & ESG, diversity & inclusion, cybersecurity, workforce risk and liability.
Why Avetta?
The Avetta SaaS platform helps clients manage supply chain risk, and their suppliers, to become more qualified for jobs. For the hiring clients in our network, we offer the world’s largest supply chain risk management network to manage supplier safety, sustainability, worker competency and performance. 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, about 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 more than 500 enterprise companies and over 125,000 suppliers across 120+ countries.