Supplier risk management

Foreseeing and mitigating supplier performance problems and other key risks

At Moody’s Analytics, we focus on the root causes of supply chain risk. Most of it stems from poor performance of specific suppliers. Behind quality, delivery, cost, and other problems you often find a company’s deteriorating financial health.

We used over a century of Moody’s Analytics experience in financial analysis to generate our proprietary Supplier Performance Risk Score, which identifies companies with a high likelihood of near-term problems. This gives our customers that much-talked-about, yet elusive, leading indicator of supply chain risk.

We don't stop at identifying suppliers at serious risk of non-performance. We provide recommendations for specific risk mitigation actions – accounting for risk tolerance and resource availability levels. 




Supplier risk management


Foreseeing and mitigating supplier performance problems and other key risks




At Moody’s Analytics, we focus on the root causes of supply chain risk. Most of it stems from poor performance of specific suppliers. Behind quality, delivery, cost, and other problems you often find a company’s deteriorating financial health.

With Moody's Analytics award-winning experience in financial analysis, you can evaluate supplier performance risk, and identify suppliers with a high likelihood of near-term problems. This gives our customers that much-talked-about, yet elusive, leading indicator of supply chain risk.

We don't stop at identifying suppliers at serious risk of non-performance. We provide recommendations for specific risk mitigation actions – accounting for risk tolerance and resource availability levels. 





How we can help you to manage supplier risk

We have a suite of services that address all the hot risk areas: Compliance (including sanctions and anti-corruption), Reputational, Sustainability, Resilience, and Cyber.


Company profile
Company profile

Our database of more than 450 million entities gives you insight into your suppliers’ risk level and helps you find new partners.


Financial and operating performance
Financial & operating performance

A supplier’s financial situation is the best predictor of performance issues. Our deep expertise in financial risk modeling helps you see which suppliers are at risk of non-performance and take action to manage your risk exposure, using our menu of mitigation options.


ESG and sustainability
Resilience

Resilience is about being prepared for disruptions – including those created by suppliers. We model a range of factors affecting suppliers, including climate events and logistical vulnerabilities.


Regulatory and compliance
Regulatory & compliance

The worldwide compliance environment is increasing in complexity. Our company database and workflow tools create a robust due diligence process for sanctions compliance, anti-corruption, and other supply chain compliance imperatives.


Reputational
Reputational

Reputational risk in the world of supply chain is related to key suppliers only. We strive to minimize white noise that usually accompanies efforts to identify reputational risk. Our media analysis aims to flag only developments that could have a significant impact.


ESG and sustainability
ESG & sustainability

As companies increasingly look to their suppliers to help them meet their ambitious ESG goals, our ESG scores, ratings, and assessments allow you to identify opportunities in your supply chain.


Cybersecurity
Cybersecurity

Cybersecurity breaches of suppliers are a threat to your proprietary information  as well as their operations. An effective defense starts with segmentation of suppliers based on the sophistication of their cyber defenses. Knowing who is most vulnerable will inform the action you take to minimize your risk exposure.





Identifying, onboarding, and monitoring suppliers


Supplier due diligence







Prioritizing supply chain risks


Creating a risk map

To assess and prioritize your many supply chain risks, we recommend creating a risk map. A risk map allows you to decide on your risk tolerance level and focus your mitigation efforts on risks your business cannot accept.

risk map: potential supply chain risks


Manage supplier risk with data, ratings, and scores

A holistic view of supplier risk relies on accurate, up-to-the-minute, extensive data sources. Moody’s Analytics provides:


448 million global entities

450 million

Over 450 million global entities and 458 million people, including 2.2 million PEPs


316 million companies with ESG scores

328 million

Over 328 million companies with ESG scores


135 million quantitative ratings and scores

135 million

Over 135 million quantitative ratings and scores


1.6 billion ownership links

1.7 billion

Over 1.7 billion ownership links, including over 209 million active ownership links






Join our latest supply chain in focus events


Events


Supply chain in focus

Join our latest supply chain in focus events and get expert insight on global supply chain risk management.

Experience live or watch on demand.







Our solutions


Explore the next generation data and analytics platform for supplier risk management

Supply Chain Catalyst provides a dashboard, scorecard, and workflows to assess, prioritize, and manage supplier performance, financial, compliance, sustainability, climate, reputational, and cyber risks.




Supply Chain Catalyst provides a 360-degree view of suppliers







Thought leadership

Browse a selection of our supply chain thought leadership on topics including supply chain resilience, the early warning signals of supplier risk, ESG risk in supply chains, and much more.


What is enterprise supplier risk management?

What is supply risk management and how can an enterprise SRM program help your company? Learn more at Moody’s Analytics today.


Early warning signals in supply chains

Your supply chain can provide early warnings of your suppliers’ financial viability, as well as showing the other risks your partners could expose you to.



The biggest ESG risks in your supply chain 

Environmental, social, and governance (ESG) issues have risen up the agenda for businesses and consumers alike. To properly tackle ESG risk, companies must look at their wider supply chains. Here are the most important ESG risks that you might find in yours.



Getting your supplier risk priorities right 

Your supply chain has many risks. How do you prioritize them, and how can you tell if your risk mitigation strategy is working?



Top 10 supply chain risks that companies face 

Several factors are having a significant impact on global supply chains, often leaving companies high and dry. But what are the 10 biggest supply chain risks that companies face?



Build resiliency in your supply chain with integrated supplier risk management

Over the past few years, Supply Chain Managers have had to deal with unprecedented disruptions to their businesses. As a result, they are now expanding their assessments beyond financial and efficiency metrics to include assessments of supply chain reliability and resilience in the face of myriad unplanned disruptions.



How are you navigating supply chain risk? 

The new era of supply chain risk management requires a new risk plan. Focusing on critical path, bottlenecks, and other high-priority areas is key to navigating the heightened risk environment.



ESG risks in your supply chain

Greater scrutiny of social and environmental risks and their effects, and growing regulatory action, will keep supply chains in the spotlight for many risk professionals.



How to withstand external shocks

Some risks are beyond your control, but a supply chain risk map can help you to manage operational disruption.



Know your supplier – know your risk exposure

Your company’s performance depends on your key suppliers. If you understand their financial vulnerabilities, you can prepare for future problems.



Turn compliance into an opportunity

Having a holistic view of supplier risk adds value to your offering – and your customers reward this.



Resilience versus efficiency: the supply chain balancing act for challenging times

Learn more from the procurement and supply chain experts who joined our roundtable event to discuss the ways disruption is changing supply risk management, and creating opportunities.



Quo vadis supply chains?

Global value chains (GVCs) are experiencing a de-globalization and decoupling trend, and determining its impacts on trade systems and industry status is key.







Ready to get started?

With our data and unifying tools and interfaces we can help you find the right solution so you can accelerate your supplier risk management objectives.

No matter where you are on your supplier risk management journey, we can help.


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