SayPro Risk Assessment Template

A template for conducting thorough risk assessments of potential suppliers and vendors to ensure that they meet regulatory requirements and standards

1. Risk Assessment Overview

• Risk Assessment Title:
  Example: Supplier Risk Assessment for [Supplier Name]
• Assessment Reference Number:
  Example: SAYPRO-RISK-001
• Date of Assessment:
  Date: [Insert Date]
• Supplier/Vendor Name:
  [Insert Supplier Name]
• Assessment Conducted By:
  [Insert Name/Position]
• Risk Assessment Type:
  [ ] Initial Risk Assessment
  [ ] Periodic Risk Assessment
  [ ] Ad-Hoc Risk Assessment

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2. Supplier Background Information

Provide the necessary information about the supplier/vendor being assessed.

• Supplier Name:
  [Insert Supplier Name]
• Address:
  [Insert Supplier Address]
• Contact Information:
  • Phone: [Insert Phone Number]
  • Email: [Insert Email Address]
  • Website (if applicable): [Insert Website]
• Supplier Type:
  [ ] Manufacturer
  [ ] Distributor
  [ ] Service Provider
  [ ] Other: [Specify]
• Products/Services Offered:
  [Insert Product/Service Description]
• Geographic Location(s):
  [Insert Country/Region]
• Industry:
  [Insert Supplier’s Industry]

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3. Regulatory Compliance Risk

This section assesses the supplier’s ability to meet legal, environmental, and industry-specific regulatory standards.

• Legal Compliance:
  • Is the supplier in compliance with local, national, and international laws?
  • Does the supplier hold all necessary licenses or certifications required by governing bodies?
  Rating Scale (1-5):
  (1 = Non-Compliant, 5 = Fully Compliant)
  • Legal Compliance Rating: _____
• Regulatory Certifications:
  • Does the supplier hold any necessary certifications? Examples include ISO 9001, ISO 14001, or industry-specific certifications.
  Rating Scale (1-5):
  (1 = No Certifications, 5 = Fully Certified)
  • Certification Rating: _____
• Environmental Compliance:
  • Does the supplier comply with environmental regulations such as waste disposal, emissions, or sustainable sourcing practices?
  Rating Scale (1-5):
  (1 = Non-Compliant, 5 = Fully Compliant)
  • Environmental Compliance Rating: _____
• Health and Safety Compliance:
  • Does the supplier adhere to health and safety regulations in their operations?
  Rating Scale (1-5):
  (1 = Non-Compliant, 5 = Fully Compliant)
  • Health and Safety Compliance Rating: _____

Comments:

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4. Financial Risk

Assess the financial stability of the supplier to evaluate their ability to fulfill contracts and obligations.

• Creditworthiness and Financial Stability:
  • Is the supplier financially stable, and do they have a history of meeting financial obligations?
  • Is there any history of bankruptcy, insolvency, or poor financial management?
  Rating Scale (1-5):
  (1 = Poor Financial Health, 5 = Excellent Financial Health)
  • Financial Risk Rating: _____
• Payment History:
  • Does the supplier have a history of timely payments, or do they frequently face payment delays?
  Rating Scale (1-5):
  (1 = Frequent Payment Delays, 5 = Timely Payments)
  • Payment History Rating: _____
• Profitability:
  • Does the supplier consistently show profitability in their financial reports?
  Rating Scale (1-5):
  (1 = Not Profitable, 5 = Highly Profitable)
  • Profitability Rating: _____

Comments:

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5. Operational and Supply Chain Risk

Assess the supplier’s operational capability and ability to fulfill contractual obligations in terms of delivery and quality.

• Capacity to Fulfill Orders:
  • Does the supplier have sufficient capacity and resources to fulfill your order in a timely manner?
  Rating Scale (1-5):
  (1 = Low Capacity, 5 = High Capacity)
  • Operational Capacity Rating: _____
• Supply Chain Reliability:
  • Does the supplier have a reliable supply chain? Have there been any significant disruptions in the past?
  Rating Scale (1-5):
  (1 = Frequent Supply Chain Disruptions, 5 = Very Reliable)
  • Supply Chain Reliability Rating: _____
• Production Lead Time:
  • Does the supplier have a predictable and reliable production lead time?
  Rating Scale (1-5):
  (1 = Unpredictable Lead Times, 5 = Consistently Reliable Lead Times)
  • Production Lead Time Rating: _____
• Quality Control:
  • Does the supplier have robust quality control measures in place? Are they capable of consistently meeting quality standards?
  Rating Scale (1-5):
  (1 = Poor Quality Control, 5 = Excellent Quality Control)
  • Quality Control Rating: _____

Comments:

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6. Reputation and Business Ethics Risk

Assess the supplier’s reputation and ethical conduct in the market.

• Reputation in the Industry:
  • Does the supplier have a positive reputation in the industry? Are they known for ethical business practices?
  Rating Scale (1-5):
  (1 = Poor Reputation, 5 = Excellent Reputation)
  • Reputation Rating: _____
• Customer Feedback and References:
  • Have you received positive references or feedback from other customers regarding the supplier?
  Rating Scale (1-5):
  (1 = Negative Feedback, 5 = Positive Feedback)
  • Feedback Rating: _____
• Ethical Business Practices:
  • Does the supplier operate with high ethical standards? Do they respect human rights, labor laws, and fair business practices?
  Rating Scale (1-5):
  (1 = Poor Ethical Standards, 5 = Excellent Ethical Standards)
  • Ethics Rating: _____

Comments:

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7. Security and Data Protection Risk

Evaluate the supplier’s measures to protect sensitive data and ensure cybersecurity.

• Data Protection and Confidentiality:
  • Does the supplier have measures in place to protect your company’s sensitive data and intellectual property?
  Rating Scale (1-5):
  (1 = No Data Protection Measures, 5 = Strong Data Protection Measures)
  • Data Protection Rating: _____
• Cybersecurity Risk:
  • Does the supplier implement strong cybersecurity practices to protect against breaches and cyber threats?
  Rating Scale (1-5):
  (1 = Poor Cybersecurity, 5 = Excellent Cybersecurity)
  • Cybersecurity Rating: _____

Comments:

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8. Risk Level Assessment

Based on the ratings above, calculate the overall risk level of engaging with the supplier.

Risk Area	Rating (1-5)	Weight	Weighted Score
Legal and Regulatory Compliance	[ ]	[ ]	[ ]
Financial Stability	[ ]	[ ]	[ ]
Operational and Supply Chain Risk	[ ]	[ ]	[ ]
Reputation and Business Ethics	[ ]	[ ]	[ ]
Security and Data Protection Risk	[ ]	[ ]	[ ]
Total Risk Score			[Total Score]

Risk Level:

• Low Risk (Score 4.0–5.0)
• Moderate Risk (Score 3.0–3.9)
• High Risk (Score 1.0–2.9)

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9. Risk Mitigation Plan

Outline any actions or mitigation strategies that should be implemented to address identified risks.

• Risk 1: [Describe risk]
  • Mitigation Strategy: [Describe actions]
• Risk 2: [Describe risk]
  • Mitigation Strategy: [Describe actions]

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10. Conclusion and Recommendation

Based on the assessment, summarize the findings and provide a recommendation regarding the potential engagement with the supplier.

• Recommendation:
  [ ] Proceed with Engagement
  [ ] Proceed with Caution
  [ ] Do Not Proceed

Final Comments:

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This SayPro Risk Assessment Template ensures a comprehensive evaluation of all potential risks in engaging suppliers and vendors, helping SayPro mitigate potential risks related to financial instability, legal non-compliance, security threats, and operational disruptions. By applying this standardized risk assessment process, SayPro ensures that it selects only those suppliers and vendors that meet all regulatory requirements and align with SayPro’s high standards for business ethics, quality, and performance.