Supplier risk management


Foreseeing and mitigating supplier performance problems and other key risks




In today's globalized economy, disruption in one part of the supply chain can have significant ripple effects, impacting businesses and economies across sectors and regions. A vast array of interconnected risks could affect supply chains at any given time. So, how can you ensure your company’s resiliency to near-term risks?

At Moody’s, we have the tools, experience, and capabilities to help you minimize your sourcing and procurement risks and tackle both predictable and unforeseen shocks —from operational and financial to compliance, geopolitical, climate, ESG and cyber risks. Our solution covers lower tiers of your supply chain, as well as your own suppliers.

Leveraging our scorecard approach to supplier risk management, powered by Moody’s world-renowned analytics, we can help you identify, prioritize, and manage vulnerabilities, enhance your sourcing, procurement, and logistical processes, and anticipate disruptions. The result? Proactive supply chain risk management.







How we can help you to manage supplier risk



Supplier risk solutions


Gain a holistic view of your supplier risk exposure and act with confidence

With Moody's, you can...


Predict
Predict

Use predictive analytics and data to help evaluate supplier performance risk and identify suppliers with high likelihood of near-term financial and operational decline.

Prioritize
Prioritize

Integrate company data into risk management decision making. Prioritize risks based on your company’s risk profile and tolerance.

Mitigate
Mitigate

Leverage leading insights and knowledge. Implement mitigation strategies sensitive to your resource level.






We have a suite of services that address all the hot risk areas: Compliance (including sanctions and anti-corruption), Reputational, Sustainability, Resilience, and Cyber.


Our database of more than 450 million entities gives you insight into your suppliers’ risk level and helps you find new partners.


A supplier’s financial situation is the best predictor of performance issues. Our deep expertise in financial risk modeling helps you see which suppliers are at risk of non-performance and take action to manage your risk exposure, using our menu of mitigation options.


Resilience is about being prepared for disruptions – including those created by suppliers. We model a range of factors affecting suppliers, including climate events and logistical vulnerabilities.


The worldwide compliance environment is increasing in complexity. Our company database and workflow tools create a robust due diligence process for sanctions compliance, anti-corruption, and other supply chain compliance imperatives.


Reputational
Reputational

Reputational risk in the world of supply chain is related to key suppliers only. We strive to minimize white noise that usually accompanies efforts to identify reputational risk. Our media analysis aims to flag only developments that could have a significant impact.


As companies increasingly look to their suppliers to help them meet their ambitious ESG goals, our ESG scores, ratings, and assessments allow you to identify opportunities in your supply chain.


Cybersecurity breaches of suppliers are a threat to your proprietary information  as well as their operations. An effective defense starts with segmentation of suppliers based on the sophistication of their cyber defenses. Knowing who is most vulnerable will inform the action you take to minimize your risk exposure.





Identifying, onboarding, and monitoring suppliers / supplier due diligence








Featured solution: Supply Chain Catalyst


The next generation data and analytics platform for supplier risk management

Explore Supply Chain Catalyst, our proprietary analytics and data platform for monitoring and managing supplier risk. Our cutting-edge solution provides you with a holistic view of suppliers across a multitude of risk factors, integrating risk data on over 489 million public and private entities globally from our flagship Orbis database.


Combining industry-leading risk assessment capabilities with robust company reference data and unique datasets, Supply Chain Catalyst offers a myriad of benefits, including:

  • The ability to measure, prioritize, and mitigate supplier risk exposures

  • A user-friendly risk dashboard or scorecard for individual suppliers or across whole portfolios 

  • Configurable reports, analytical graphs, workflows, and notifications

  • Supplier segmentation analysis to prioritize risks 

  • Corporate structure linkages to monitor subsidiaries

  • ESG and climate scores along with assessments to inform your responsible sourcing and sustainability strategy 

  • Supplier screening to manage anti-corruption, compliance, and reputational risks

  • Cybersecurity risk assessment of key suppliers with cybersecurity ratings by BitSight 

  • Customized alerts to monitor your supply chain


Supply Chain Catalyst provides a 360-degree view of suppliers

The result: Enjoy a multi-faceted, robust, and efficient supplier risk segmentation, monitoring, and management process.







Manage supplier risk with data, ratings, and scores

A holistic view of supplier risk relies on accurate, up-to-the-minute, extensive data sources. Moody’s provides:


448 million global entities

528 million

Over 528 million global companies and entities


316 million companies with ESG scores

372 million

Over 372 million companies with ESG predicted scores


135 million quantitative ratings and scores

480 million

Over 480 million companies with Moody's Probability of Default scores


1.6 billion ownership links

1.9 billion

Over 1.9 billion ownership links, including over 218 million active ownership links






Events


Supply chain in focus

Join our latest supply chain in focus events and get expert insight on global supply chain risk management.

Experience live or watch on demand.




Join our latest supply chain in focus events






Thought leadership

Browse a selection of our supply chain thought leadership on topics including supply chain resilience, the early warning signals of supplier risk, ESG risk in supply chains, and much more.


January 2024
Top-Three 2024 Supply Chain Challenges and Opportunities

For Supply Chain leaders, 2024 is already – with military action in the Red Sea - shaping to be a difficult year. What are this year’s toughest challenges and opportunities?


January 2024
Moody's Analytics Recognized in Gartner's Market Guide for Supplier Risk Management Solutions

Moody’s Analytics has been featured in Gartner’s 2023 Market Guide for Supplier Risk Management Solutions—underscoring our commitment to helping clients effectively manage supplier risk and build resilience.


October 2023
Top 10 supply chain risks that companies face 

Several factors are having a significant impact on global supply chains, often leaving companies high and dry. But what are the 10 biggest supply chain risks that companies face?


July 2023
Why a supplier's financial health is your business

Learn how predictive insights can help signal a decline in supplier performance and, in turn, protect your business.


June 2023
U.S. - China Relations: 3 Steps to Rebalancing Supply Chains

Learn about the three steps you can take to rebalance supply chains that may be unsettled by geopolitical tension.


June 2023
Unearthing sustainability performance in supply chains

Data on companies’ sustainability performance has uses beyond regulatory reporting. This blog delves into the three operational benefits that supply chain data can uncover.


May 2023
Is supply chain risk board-worthy?

Supply chain risk is now a consideration for the C-suite. Which supply chain-related issues can reach the board? And what can be done to effectively manage them?


April 2023
Protecting supply chains against cyber risk

How can organizations proactively mitigate risks posed by breaches of key suppliers? Thanks to a combination of robust internal processes and Moody’s Analytics supplier risk solutions, organizations can be more effective.


April 2023
Decoding cyber risk

With the frequency and financial cost of cyber-attacks rising, is your organization set up to address cyber risk.


March 2023
Navigating Supply Chain Regulation & German Supply Chain Due Diligence Act

The German Supply Chain Due Diligence Act came into effect this year. Companies should make sure they’re prepared for further regulation and legislation worldwide.


March 2023
What is enterprise supplier risk management?

What is supply risk management and how can an enterprise SRM program help your company? Learn more at Moody’s Analytics today.


January 2023
Nearshoring and Friendshoring: What are the Risks and Benefits?

Sourcing from neighboring and/or friendly countries can have upsides, but there are also significant risks to manage.


November 2022
Early warning signals in supply chains

Your supply chain can provide early warnings of your suppliers’ financial viability, as well as showing the other risks your partners could expose you to.



October 2022
The biggest ESG risks in your supply chain 

Environmental, social, and governance (ESG) issues have risen up the agenda for businesses and consumers alike. To properly tackle ESG risk, companies must look at their wider supply chains. Here are the most important ESG risks that you might find in yours.



October 2022
Getting your supplier risk priorities right 

Your supply chain has many risks. How do you prioritize them, and how can you tell if your risk mitigation strategy is working?




May 2022
Build resiliency in your supply chain with integrated supplier risk management

Over the past few years, Supply Chain Managers have had to deal with unprecedented disruptions to their businesses. As a result, they are now expanding their assessments beyond financial and efficiency metrics to include assessments of supply chain reliability and resilience in the face of myriad unplanned disruptions.



April 2023
Industry insight into third-party risk management

Moody’s Analytics recently carried out a piece of qualitative research with 41 global corporations to delve into their priorities and processes for third-party risk management (TPRM).

We wanted to understand:

  • People’s current understanding and awareness of TPRM
  • How they approach TPRM and supplier due diligence today
  • The challenges companies face when onboarding and monitoring suppliers
  • What best practice looks like and what steps are taken to mitigate risk
  • Company attitudes towards TPRM, openness towards solutions, and perceptions of the benefits of improved monitoring

You can now access a copy of the research report and review its findings. If you have any questions, we’d welcome a conversation with you about your approach to third-party risk management.







April 2024
Nearshoring and potential trade triangulation

Exploring nearshoring’s impact in North America, this paper examines Mexico’s role and the risk of trade triangulation amid evolving global dynamics.


March 2024
Geopolitics & supply chains

Geopolitical turmoil is upending suppy chains in the era of exponential risk


November 2023
A practical guide to boosting supply chain performance

Moody’s new paper offers a step-by-step guide to building a robust supply chain risk management strategy.

This includes:

  • The myriad supply-chain related risks that companies today are encountering and possible methods of mitigation;
  • The steps that supply chain teams can take to establishing a robust supply chain risk management strategy;
  • Best practices for lobbying the board to greater investment in supply chain risk management;

March 2023
Resilience versus efficiency: the supply chain balancing act for challenging times

Learn more from the procurement and supply chain experts who joined our roundtable event to discuss the ways disruption is changing supply risk management, and creating opportunities.



September 2022
Quo vadis supply chains?

Global value chains (GVCs) are experiencing a de-globalization and decoupling trend, and determining its impacts on trade systems and industry status is key.





Ready to get started?

With our data and unifying tools and interfaces we can help you find the right solution so you can accelerate your supplier risk management objectives.

No matter where you are on your supplier risk management journey, we can help.


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