BUILDING REGULATORY COMPLIANCE ACROSS A GLOBAL SUPPLY CHAIN
As demonstrated by the COVID-19 pandemic, the strength and integrity of supply chains has perhaps never been more important. They are the lifeblood of many companies. But as the complexity of supply chains increases, so do the potential risks.
Sanctions, human trafficking, cyber security and sustainability risks have all complicated the regulatory compliance outlook. In addition, trade agreements between countries are constantly under review and can change for a variety of political and economic reasons, with a dramatic impact on supply chains.
Given the potential consequences of non-compliance, it is imperative that businesses closely monitor factors which may affect their obligations. While compliance and risk management is an ongoing, evolving process, ignorance is no defence. In the event of non-compliance, companies may be subject to fines and reputational damage, and individuals could face a custodial sentence.
Supply chain disruption
COVID-19, particularly in the early months of the outbreak, strained or severed supply chains as factories and transport links suddenly shut in an attempt to control the virus. In April 2020, the World Trade Organisation (WTO) said it expected global merchandise trade to fall by between 13 and 32 percent through the year. It also warned that sectors reliant on elaborate supply chains, such as the electronics and automotive industries, would suffer most.
Apr-Jun 2021 Issue
Richard Summerfield