The risk assessment is step 2 of the due diligence process: the deforestation risk of each delivery is evaluated based on the country or region, the supplier and the complexity of the supply chain. The goal is to reach negligible risk.
It connects data collection (step 1) with risk mitigation (step 3) and decides whether further measures are needed before a product can be placed on the market.
Which factors are assessed?
- The country or region of production and its risk classification
- The reliability and transparency of the supplier
- The complexity of the supply chain
- Indications of deforestation since the cut-off date
What is the goal?
The assessment must show that the risk of a non-compliant product is negligible. If it is not, risk mitigation measures must be applied until that level is reached.
How does country benchmarking come in?
The EU classifies countries by risk level. Where a product comes from a low-risk country, a simplified due diligence applies. The risk assessment therefore depends directly on the benchmarking outcome.
In short: The risk assessment weighs country, supplier and supply-chain factors to confirm negligible risk – the prerequisite for placing a product on the market.