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Supplier Risk Assessment

Supplier Name : Rikun Manufacturing Pvt Ltd
Supplier Location : A-43,Sipcot Industrila growth centre ,Orgadam
Commodity : Plastic Injection Moulding, Metal Parts
Date of Risk Assessment: 31-Aug-19

Sl No Areas of Risk Risk Description Risk Level

1.1
1
Human Labour Problems / Strike / Wage Negotiation
Resource Absence due to Manpower shortage during
Standards festive season
2

1.2
Catastrophic Loss Risk. A major disaster
(Flooding, power outage, Earth Quake, other
natural & political calamities) threatens the
2.2 company's ability to sustain safe operations, 2
provide essential services, and/or recover
operating costs.

Technology Shift Risk. Dramatic shifts or

adjustments in emerging technology are not
2.3 capitalized upon due to the company’s reliance on 3
current paradigms.

Product Portfolio Risk. The risk that the company

will not maximize business performance by
2.4 effectively prioritizing and balancing its products in 2
a strategic context.

Leadership Risk. The risk that the company

employees are not being led effectively, resulting
2.5 in a lack of direction, customer focus, motivation, 2
management credibility and trust throughout the
company.

Reputation Risk. The risk that the company loses

customers, key employees, or its ability to
2.6 compete due to perceptions impacting the 1
company’s reputation in the marketplace.

Business Interruption Risk. Business

interruptions stemming from technological
2.7 failures, equipment failures, or other events occur 1
which result in an unfavorable impact on
operations.

Change Readiness Risk. the company is unable

to implement process or service improvements
2.8 quickly enough to keep pace with changes in the 1
marketplace.
 Customer Satisfaction Risk. the company's
processes do not consistently meet or exceed
customer expectations potentially impacting future
earnings potential.

3.1 2

Operation Risk
Outsourcing Risk. Failure to manage outsourced
activities may result in the third parties not acting
within the intended limit of authority or not
3.2 performing in a manner consistent with the 2
company's strategies, objectives, or regulatory
requirements.

Resource Allocation Risk. the company's

resource allocation process does not establish
3.4 and sustain competitive advantage or maximize 2
returns.
 Human Resources Risk. A lack of training,
knowledge, skills, career opportunities, or
3.6 experiences of the company key personnel 2
threatens the achievement of critical business
objectives.

Performance Incentives Risk. Unrealistic,

misunderstood, subjective, or non-actionable
performance measures cause managers and
3.7 employees to act in a manner inconsistent with 2
the company's objectives, strategies, ethical
standards and prudent business practices.

Process Efficiency/Effectiveness/Performance
Risk. Inefficient or ineffective or poorly designed
operations and unnecessarily slow processes
3.11 threaten the company's ability to achieve 2
business objectives. Eva

Communications Risk. Ineffective communication

channels result in messages that are inconsistent
Operation Risk with authorized responsibilities and do not
3.14 2
effectively convey information as intended.

Supply Availability/Critical Vendor Risk. Limited

availability or problems with a critical vendor
3.16 threatens the company's ability to provide quality 2
service at competitive prices.
Product Development Risk. the company's
product development processes (testing, change
control and development methodology) result in
3.17 the creation of products that customers do not
want, are unnecessarily late in reaching the
market, or lack integrity.

Availability Risk. The risk that information will not

be available when needed if loss of
communication (e.g., cut cables, telephone
3.18 system outage) loss of basic processing capability 2
(electrical outage) or operational difficulties
(machine breakdown) were to occur.

Legal/Regulatory Risk. The risk that changes in

laws/regulations or litigation claims and
4.1 assessments result in a reduction to the 2
company's ability to efficiently conduct business.

Compliance
Risk
 Regulatory Compliance Risk. Nonconformance
with current laws and regulations (e.g., Child
labour, Pollution Control Board, EPF, Labour laws)
exposes the company to shutdown, sanctions,
4.2 fines, and penalties and threatens the company's 2
Compliance reputation, business opportunities, and expansion
Risk potential.

Taxation Risk. The risk that the company is not in

compliance with all tax regulations and
requirements (Income tax /Sales tax/Excise Duty);
or that significant transactions are entered into
4.3 which have adverse tax consequences that could 3
have been avoided had they been properly
reviewed and structured.
upplier Risk Assessment

Risk Mitigation Plan Resp Target date

Communication Meeting
conducted yearly once in
employess HR

3 Days buffer stock will be

maintained as per contigency paln
and reviwed six months once HR

Updated in contigency plan and will

be reviewed 6 months once Top Management

Expansion in Product base and more

orders towards Plastics,Metals to be Business
identified and established Development

Leadership Traning to the employees HR

based on Annual Training program
and motivation program .

Motivation program arragement for

six months once and indiviual person
has an target
HR Reviwed once in Six months
Expansion in products base,
More Orders towards Plastics,Metals
to be identifed and Established

Business Development Reviwed in Montly Meetings

Strategic partnerships with large Strategic partnerships with large Companies
Companies

Strategic partnerships with large

Companies

Business development
 1.Conducting the Process/Product
audits as per paln & monitoring the Review Frequency will be
requirement . Monthly Once
2.Verifying the CSR in product and
Process Auidt .
3.Monitoring on Time Delivery Business Development
Complaince . Enginering
4.Reviewing the statutory and Quality
regulatory requirements . Scheduling

Outsourcing Products are

reviewed and planned auidt are SQE Once in Six months
conducted six months once.

Resource allocation planned by

projcet team and reviwed Projcet Management
 Periodic Review of Skill matrix and
comptency record and on the job
training for new employees
HR

Communication meeting conducted

once in six months with objectives
and companys ethical standarads HR

Objectives been defined for indiviual

with respect to Departmental
objectives and reviwed in Monthly
meetings
MR

Internal and external

Communication are established and
reviwed Once in six Months
HR

Dual source available for all critical

vendors
Purchase

NA

Predective and Preventive

maintanance done as per annual
plan and will be reviwed by monthly
basis Maintenance Monthly Once

Timely Communication and Co

Operation and Reviewing
complaince of statutory and
regulatory requirements in Monthly
Meeting
HR
 Timely Communication and Co
Operation and Reviewing
complaince of statutory and
regulatory requirements in Monthly
Meeting

HR Monthly Once

Regulatory Auidt are conducted once

in four months by auditors and Finance &
reviewing the acheviements of Accounts
revenues and profits on Monthly
basis

Four Months once

 Measure of Residual Likelihood Given Current State of Compliance Controls/Program
No. Rank Likelihood Description
Almost
5 High Expected to occur in most circumstances (e.g., more than once per year)
Certain
Medium -
4 Likely Will probably occur (e.g., at least once per year)
High
3 Medium Possible Might at some time (e.g., at least once in five years)
Low-
2 Unlikely Could occur at some time (e.g., at least once in 10 years)
Medium
1 Low Rare May only occur in exceptional circumstances (e.g., less than once in 15 years)