Lifecyclemanagement

To meet ESG (Environment, Social, Governance) requirements, companies face the challenge of reviewing their suppliers under the 2023 Supply Chain Act and assessing them against a risk management framework, similar to what financial institutions do with their customers as part of the Know-Your-Customer (KYC) process. This has to be done continuously throughout the relationship from onboarding to offboarding. Both global and regional requirements have to be considered and implemented. 

While every financial institution has to ensure the implementation of the Know-Your-Customer process, in 2023 companies with at least 3,000 domestic employees will be affected by the Supply Chain Act - and from 2024 this will impact companies with at least 1,000 employees. The KYC process forms the basis for combating financial crime (including terrorist financing, money laundering and sanctions), and the supply chain law is similar in its compliance with human rights. Due to continuously changing rules and requirements on the part of regulatory authorities, companies are facing the challenge of implementing these both globally and regionally.

With the support of modern technologies, the life cycle of customers or suppliers can be mapped digitally end-to-end and without media disruption, taking a wide range of internal and external data sources into account. This enables the creation of real-time profiles, on the basis of which risk management can be carried out continuously. Reassessment can be performed at runtime by external triggers from other systems (e.g. purchasing for ESG, or transaction monitoring for KYC).