The EU classifies countries into risk levels: low, standard or high. This classification determines the scope of the due diligence obligations. For low-risk countries, a simplified due diligence applies.
Benchmarking therefore directly affects how much work a delivery involves – and feeds into your risk assessment.
What do the risk levels mean?
- Low risk: simplified due diligence – reduced obligations
- Standard risk: full due diligence
- High risk: full due diligence with closer scrutiny
How does it connect to the risk assessment?
The country classification is one of the central factors in the risk assessment. A low-risk origin lightens the obligations; a higher classification means more thorough checks before negligible risk can be confirmed.
What does this mean for your supply chain?
Knowing the classification of your sourcing countries helps you plan effort and target your controls. The origin is part of the data you record for the due diligence statement.
In short: Country benchmarking sorts countries into low, standard and high risk – and thereby sets the scope of your due diligence.