rba labor Rish Assessment training slides.pptx

rba labor Rish Assessment

1. Risk Assessment Matrix Example: Prompt: Assign a Likelihood (1-5) and an Impact (1-5) score to each ethical risk. Determine whether the overall risk level for each ethical issue is low , medium , or high . Ethical Risk Likelihood (1-5) Impact (1-5) Overall Risk (Low, Medium, High) Mitigation Strategy Unfair wages Excessive overtime Poor working conditions Improper sourcing of conflict minerals No safety measures or emergency procedures Risk Assessment Matrix for Group Activity:

2. Training Objectives Understand the principles of RBA 8.0.1 related to Supply Chain Management Learn how to identify, assess, and mitigate risks in the supply chain Develop strategies to ensure compliance with the RBA 8.0.1 requirements Understand the importance of supplier audits and corrective actions

3. Overview of RBA 8.0.1 Supply Chain Requirements RBA Code of Conduct Overview: Ethical sourcing Environmental responsibility Labor standards Occupational health and safety Business ethics Specific Supply Chain Requirements: Responsible Sourcing of Materials (E3) Supplier Responsibility (E4) Risk management protocols

4. Introduction to Supply Chain Risk Assessment Definition of Supply Chain Risk: Risks arising from supplier relationships that can disrupt operations, damage reputation, or lead to non-compliance with standards. Types of Risks: Operational Risks: Supplier production delays, capacity issues, or quality failures. Compliance Risks: Non-compliance with labor, environmental, or ethical standards. Financial Risks: Supplier insolvency or financial instability. Geopolitical Risks: Risks from political instability, trade wars, or regulations in supplier countries. Environmental and Health Risks: Risks from unsafe materials or processes in the supply chain.

5. The Risk Assessment Process Step 1: Risk Identification Mapping the Supply Chain: Identify suppliers, sub-suppliers, and critical supply nodes. Risk Categories: Labor practices, environmental impact, materials sourcing, legal compliance. Step 2: Risk Evaluation Risk Rating: Assess each risk in terms of likelihood and potential impact. Risk Prioritization: Focus on high-risk areas that pose the greatest threat to operations or compliance. Step 3: Risk Mitigation Implementing Controls: Corrective actions, supplier audits, training, and monitoring. Continuous Monitoring: Ongoing evaluation of risks and supplier performance.

6. Tools for Supply Chain Risk Assessment RBA Self-Assessment Questionnaire (SAQ): Covers labor, health and safety, environment, ethics, and management systems. Helps suppliers identify areas of non-compliance. Supplier Risk Management Software: Automates risk scoring and reporting. Tracks supplier compliance in real-time. Onsite Audits: Conduct audits to verify supplier practices and controls. Use the RBA Validated Assessment Program (VAP) as a benchmark.

7. Identifying High-Risk Suppliers Criteria for Identifying High-Risk Suppliers: Geographic location (high-risk regions for labor or environmental violations) Supplier history (previous non-compliance or ethical concerns) Materials sourced (conflict minerals, hazardous materials) Dependence on single suppliers or sole-source relationships Supplier Tiering: Tier 1: Direct suppliers Tier 2: Sub-suppliers Tier 3: Raw material suppliers

8. Conducting Supplier Audits Types of Audits: Desktop Audits: Based on documentation and self-reports. Onsite Audits: Physical inspections of supplier facilities. Key Areas to Focus On: Labor rights (child labor, forced labor, wages, working hours) Health and safety compliance (safe working conditions) Environmental standards (waste management, emissions) Ethical behavior (bribery, corruption)

9. Real-Life Case Study 1 - Apple’s Supply Chain Challenges Scenario: Apple faced supply chain risks due to environmental and human rights concerns with suppliers in Asia. Risk Identified: Use of child labor, unsafe working conditions, and pollution. Response: Implemented stringent supplier audit mechanisms. Terminated contracts with non-compliant suppliers. Increased transparency and collaboration on sustainability efforts.

10. Conducting a Supply Chain Risk Assessment Step 1: Identify Risks List potential risks (environmental, operational, financial, etc.) Step 2: Assess the Impact How severe would the impact be if this risk materializes? Likelihood of occurrence. Step 3: Prioritize Risks Focus on high-impact and high-probability risks. Step 4: Mitigation Strategy Develop strategies to reduce or eliminate risks. Step 5: Monitor and Review Continuously monitor supply chain activities and review risk assessments.

11. Risk Likelihood (1-5) Impact (1-5) Priority Mitigation Strategy Supplier non-compliance with RBA 4 5 High Conduct regular audits, provide training to suppliers. Natural disaster disrupting supply 3 5 Medium Diversify supplier base, develop a disaster recovery plan. Supplier bankruptcy 2 4 Low Monitor supplier financial health, negotiate contingency contracts. Example of a Supply Chain Risk Assessment

12. Conclusion & Next Steps Proactively managing supply chain risks ensures business continuity and compliance with RBA 8.0.1. Incorporate real-time monitoring and frequent audits. Build a culture of continuous improvement and risk awareness across all levels of the supply chain.

13. Overview of Risk Assessment What is Risk Assessment? Identifying potential hazards in the workplace. Evaluating the risks associated with those hazards. Implementing control measures to reduce the risks. Importance of Risk Assessment: Protects employees from harm. Helps ensure compliance with regulatory frameworks like RBA 8.0.1 . Promotes a culture of safety.

14. .0.1 Requirements on Risk Assessment Responsible Business Alliance (RBA) 8.0.1 Pillar Focus: Focuses on worker health, safety, and well-being. Emphasizes proactive identification and mitigation of risks. Requires continuous monitoring, evaluation, and documentation. Key Areas of Concern in RBA 8.0.1: Health hazards (e.g., chemical exposure, noise, ergonomic risks). Safety hazards (e.g., machinery, fire risks, electrical hazards). Psychological and physical well-being of workers.

15. Risk Assessment Process Step 1: Identify hazards. Step 2: Assess the risks associated with the hazards. Step 3: Determine the severity and likelihood. Step 4: Implement control measures. Step 5: Monitor and review control measures.

16. Types of Hazards Physical Hazards: Examples: Noise, heat, machinery. Chemical Hazards: Examples: Exposure to hazardous substances, fumes. Ergonomic Hazards: Examples: Repetitive strain, improper workstation design. Biological Hazards: Examples: Bacteria, viruses, and contaminated water. Psychosocial Hazards: Examples: Stress, harassment, long working hours.

17. Real-Life Case Study 1 – Chemical Exposure Scenario: A manufacturing facility experienced several worker complaints of dizziness and skin rashes after handling chemicals without proper PPE. Risk Identified: Lack of protective equipment and poor ventilation in the chemical storage and handling area. Action Taken: Conducted a risk assessment. Implemented proper ventilation systems. Provided PPE (gloves, masks) and training on chemical handling. Outcome: Improved worker safety and reduced health complaints.

18. Hazard Risk Likelihood Severity Risk Rating Control Measures Chemical exposure Inhalation of fumes, skin irritation Likely Major High PPE (gloves, mask), ventilation, training Slips on wet floor Falls, injuries Possible Moderate Medium Proper signage, mats, housekeeping Electrical equipment Electric shock Unlikely Major Medium Regular equipment inspection and maintenance Risk Assessment Template Example Hazard: Chemical exposure during painting. Risk: Workers inhaling toxic fumes or getting chemical burns.

19. Control Measures Hierarchy of Controls: Elimination: Remove the hazard. Substitution: Replace the hazard with a less dangerous one. Engineering Controls: Isolate people from the hazard. Administrative Controls: Change the way people work. Personal Protective Equipment (PPE): Provide protective gear.

20. Monitoring and Reviewing Risk Assessments Regular Updates: Ensure risk assessments are updated regularly, particularly after any changes in processes or equipment. Incident Review: Review risk assessments after incidents to identify additional risks or required improvements. Worker Involvement: Involve workers in the risk assessment process for practical insights and solutions.

21. Summary and Key Takeaways Conducting thorough risk assessments ensures compliance with RBA 8.0.1 and protects worker health and safety. Implement control measures based on the hierarchy of controls . Regularly review and update risk assessments to ensure ongoing effectiveness. Case Studies show the importance of proactive risk identification and action.