Source of Influencers
Internal Connections within your group of companies, or purchasing specifications generated internally, or decisions made at board level can all lead you to operate in certain countries, with higher associated risks than other countries.
External Suppliers may choose to 'cluster' because of the proximity of raw materials, or geographic advantage e.g. a port.
Organisational Consequences
Operational Restrictions on commodities or materials leading to loss of supply, climate-related problems or delays (occasionally with devastating effect), and difficulties in moving goods to or from a particular region, are all potential operational risks.
Financial Operational challenges in distant regions are expensive to rectify from afar, especially if a quick solution is required.
Reputational If publicly scrutinised, would your decision to buy from a particular region provide any reputational challenges? Could your involvement in a region be interpreted as exploitative?
Sustainability Consequences
Social Difficult to monitor compliance with your policies; audits organised, and announced well in advance can be 'rigged'.
Environmental Environmental challenges due to climatic conditions, e.g. areas prone to floods.
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