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Initial Risk Assessment
The Initial Risk Assessment, or Risk Assessment 1 (RA1), is one of the main tools used to determine a supplier’s potential corporate responsibility risk and is used in Phase One of the Engagement model.
The purpose of the RA1 is to help companies prioritize and focus efforts on the suppliers and locations of greatest potential risk. The "risk" being assessed is compliance risk (likelihood of regulatory noncompliance and EICC Code of Conduct nonconformance) and reputation risk (the significance of poor CSR performance to the customer).
The RA1 tool® can be completed prior to the more detailed Self-Assessment Questionnaire (SAQ) and helps a customer select which of its suppliers should be asked to complete the SAQ. The RA1 tool® may also be helpful in deciding which suppliers to engage with in other ways.
Some companies may choose to use the RA1 tool® at the same time as the SAQ.
Risk Assessment 1 Framework
The RA1 tool® consists of a series of questions that can be answered by the customer (i.e. not the supplier) using information that the customer already knows about the supplier. However, some companies may ask their suppliers to complete the RA1 on their behalf. The output of the RA1 tool® will be a risk ‘weighted score’ for each of the company’s suppliers and/or supplier’s facilities.
 The RA1 tool® includes questions about supplier location, manufacturing processes, and the relationship between the customer and supplier.
The RA1 tool® has been designed for use by individual customers acting alone and not for a group of customers acting together. The RA1 tool® includes customer-specific questions such as the size of a contract or whether branded products are being produced. Each company can also customize the scores and risk weightings based on their needs.
The RA1 tool® has also been designed to assess either individual sites/facilities or whole suppliers and has been designed to work at either the level of the individual contract or the whole supplier relationship. It is also effective where a single contract or supplier involves locations in more than one country.
NOTE: The questions in the RA1 tool® have been written with the most probable indicators of risk of non-conformance in mind. Of course there will always be exceptions that apply, which is why the RA1 tool® is a ‘risk assessment tool’ and not intended to measure corporate responsibility performance. The output of the tool and associated scoring system do not necessarily indicate how well a company is managing its corporate responsibility risk.
Click here to download the RA1 tool®.
(Last updated September 1, 2011)
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