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Become a partnerSupplier Risk Management for Resilient Supply Chains
Geopolitical tensions, climate change, cyberattacks, and new regulatory requirements such as NIS2 or the EUDR are increasing pressure on procurement teams to systematically monitor supply chain risks. With our supplier risk management solution, you can identify reputational, financial, cyber, and ESG risks at an early stage, prioritize them in a structured way, and manage supplier risk continuously, in an automated and compliant manner—without adding workload for procurement.
The Supply Chain Platform has further increased transparency across our suppliers. That’s been a major benefit for us.
We chose VERSO because the platform helps us actively manage our supply chain — specifically by creating transparency, qualifying suppliers, analyzing risks, and thereby fulfilling our due diligence obligations while achieving our sustainability goals.
We were particularly impressed by the simple implementation of upstream supply chain transparency by VERSO Supply Chain Hub. With the automated risk analysis and professional support, we can efficiently fulfil the requirements of the LkSG and other regulations.
With the VERSO Supply Chain Platform, we have found a solution for engaging with suppliers on the right topics and bringing about changes in the supply chain.
The partnership with VERSO is an important step towards gaining a holistic overview of our international supply chain and creating transparency right down to the depths of the complex supply and value chain.
Thanks to the VERSO Supply Chain Hub, we had almost all of our suppliers on board in a very short time and are now able to provide a meaningful risk analysis. The transparency gained in the supply chain forms a solid basis for long-term partnerships and sustainable measures.
Supply chain risks are increasing – transparency is lacking
Many of today’s largest global risks have a direct impact along supply chains – from geopolitical tensions and extreme weather events to cyberattacks. Yet many procurement organizations are not prepared: Only 26% of companies have established an explicit supplier risk management system, and just 31% rate their measures as satisfactory (BME Logistics Study).
What can happen when risks are not identified proactively is visible in the media every day:
- In summer 2025, low water levels on the Rhine meant that cargo vessels could operate at only 40 to 50% capacity in some cases, resulting in delivery delays and rising costs.
- Following Russia’s war of aggression against Ukraine, automotive manufacturers had to reorganize and halt production while building new distribution networks, as they depended on wire harnesses sourced from Ukraine.
- In a Bitkom study, 3 out of 10 companies reported that cyberattacks were deliberately carried out via suppliers.
- In mid-2025, mid-sized companies were confronted with US tariffs amounting to 15%. MDR headlined: “15 Percent US Tariff Weighs on Mid-Sized Companies: ‘Costs are not manageable‘”
How structured supplier risk management works
What all these examples have in common: Risks are identified too late – resulting in avoidable costs, supply disruptions, and uncertainty. This makes a structured approach to supplier risk management essential. In practice, organizations often struggle with three core challenges:
- Lack of transparency regarding suppliers and key supply chain risks
- No consistent method to assess and prioritize risks
- Reactive processes and limited procurement resources
Our supplier risk management approach enables procurement organizations to identify, assess, and continuously monitor financial, cyber, and ESG risks across the supply chain at an early stage. This allows you to maintain full visibility over your suppliers, keep risks under control, and act before issues escalate.
At the same time, our supplier risk management solution integrates seamlessly into your existing supplier management processes, ensuring no additional workload for procurement teams.
On the contrary: The platform optimizes and streamlines supplier management processes. The result is an automated supplier risk management system covering the entire lifecycle of your supplier relationships:
Prepare supplier master data
Effective Supplier Risk Management begins with clean, structured data. Therefore, you first consolidate and enrich all relevant supplier information — automated and AI-assisted:
- Easy import of supplier master data via batch upload or REST API
- Automatic enrichment of missing data like NACE code or country of residence using AI
- AI-based scraping of existing certificates and documents plus uploading of existing ERP files
- Segmentation of suppliers using predefined or custom tags
Automatically determine risk exposure
On this basis, you analyze the abstract risk exposure of your supply chain — independent of individual self-disclosures. This lets you identify early where elevated supplier risks exist and which suppliers should be prioritized:
- AI-based risk scoring covering ESG, financial, reputational, and cyber risks
- Compliance oriented to LkSG, CSDDD, and UN Guiding Principles
- Customizable risk score tailored to your company
- Analysis at site, raw material, and country level
- Automatic alerts when risks or ESG compliance changes
Engage suppliers and verify risks
Next, you actively involve your suppliers and sub-suppliers (multi-tier approach). This validates identified supplier risks, lets you request targeted evidence, and gives you a reliable assessment of the real situation at your partners:
- Invite suppliers to the platform easily and for free — including in complex multi-tier chains
- Automated sending and evaluation of annual questionnaires
- 13 standardized assessments that directly assess supplier ESG maturity
- Structured collection of proofs and documents
- Comprehensive support and help for suppliers
- Real-time monitoring of changes in supplier data
Initiate & monitor mitigation actions
In the final step, identified risks are actively addressed and monitored continuously. What was once risk scoring becomes an automated supplier risk management with clear actions, responsibilities, and transparency on progress:
- Alerts, warnings, and screening of relevant events like natural disasters, sanctions lists, or negative press
- Documentation and tracking of mitigation and compliance measures
- Extensive actions database with automatic recommendations
- Central certificate management with deadline tracking
- Clear responsibilities through task management and automatic reminders
Multiple, overlapping crises pose significant risks to global supply chains and present major challenges for procurement teams. With the Supply Chain Hub, procurement can easily and automatically gain transparency into risks, strengthen supply chain resilience, and ensure compliance at the same time.
VERSO – your partner for supply chain risk management
VERSO is the pioneer in sustainability and ESG software for medium-sized businesses – offering scalable solutions that stay fully up to date with regulatory requirements. We work closely with our legal partner Taylor Wessing to provide you with the highest possible level of legal certainty.
We guide you through sustainability.
Including your supply chain.
References
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