Platform instead of siloed solutions: How companies ensure comprehensive risk management

Companies are faced with the challenge of managing due diligence and risks along the entire supply chain, including the increasingly important geopolitical risks. Growing geopolitical uncertainties and tensions as well as complex regulatory requirements require companies to rely on robust and holistic solutions. Comprehensive risk management is therefore essential. This blog post highlights the importance of comprehensive risk management, explains the advantages of a platform solution over individual software solutions and offers an excursion into the geopolitical risks that companies need to consider today.

The Need for Comprehensive Risk Management

Organizations today face a variety of challenges: Stringent regulatory requirements such as the German Supply Chain Act (LKSG) or the Corporate Sustainability Due Diligence Directive (CSDDD) are mandating that they make their supply chains transparent and sustainable. These regulatory requirements not only demand an accurate risk analysis, but also the continuous monitoring and documentation of risks within the supply chain.

A comprehensive risk management system enables companies not only to comply with regulatory obligations, but also to proactively respond to potential risks. This includes analyzing ESG (environmental, social, and governance) factors, automating processes, and integrating data from multiple stakeholders to gain a holistic view of the supply chain.

Why a Platform Solution?

In practice, many companies rely on stand-alone solutions to meet different regulatory requirements. The resulting siloed landscape often leads to a fragmented IT structure that is costly to implement and maintain. The introduction and integration of each individual software solution with internal systems and external data sources requires considerable resources and thus significantly reduces efficiency. 

A platform like the osapiens HUB offers significant advantages. The one-time connection of internal and external systems to a central platform minimizes the integration effort. The platform also enables the use of synergies between different solutions. Data can be seamlessly exchanged and used for different applications. This increases the efficiency and accuracy of risk analysis. 

For example, the osapiens HUB for Due Diligence integrates various risk management tools that all access a central database. This allows companies to collect and evaluate all relevant data in one place. The platform also automates processes and simplifies sustainability reporting by providing all necessary data and analysis securely and quickly. 

Geopolitical risks: Agora Strategy’s New Product Feature for the osapiens HUB for Due Diligence

In corporate risk management, geopolitical risks play an increasingly important role. They can significantly disrupt supply chains and affect business operations. To help companies overcome these challenges, Agora Strategy has developed a special product extension for the osapiens HUB.

The “Geopolitical Risk Circle” enables a comprehensive assessment and continuous monitoring of geopolitical risks. This add-on is designed to provide companies with a sound basis for decision making and to strengthen the resilience of their supply chains against geopolitical uncertainties. 

This risk circle covers four dimensions:           

1. domestic political stability 
2. security risks
3. economic environment
4. macroeconomic stability

Data Integration and Analysis

Agora Strategy leverages a global network of over 300 experts to deliver timely and accurate information. They continuously monitor political and economic developments and provide qualitative assessments in text form. These assessments complement the quantitative indicators and provide a detailed and up-to-date assessment of the geopolitical situation in various countries.

The risk assessments are based on publicly available indicators that are regularly updated. To provide an even more accurate and timely assessment, Agora Strategy offers monthly qualitative assessments for specific countries. These analyses include both the status quo and an outlook for the coming quarter.

Application in the osapiens HUB

The geopolitical risk circle is seamlessly integrated into the osapiens HUB, enabling companies to monitor risks at the country level in detail. Each country is evaluated based on an individual risk score that takes into account the four risk dimensions. Companies can use these scores to make informed decisions and adapt their supply chains accordingly.

By integrating this feature, companies can proactively manage the geopolitical risks of their suppliers and business partners. The osapiens HUB thus offers a holistic solution that covers both regulatory and geopolitical requirements and helps companies to strengthen their resilience to global uncertainties.

About Agora Strategy

Agora Strategy is a leading geopolitical strategy consultancy, founded in 2015 by former German ambassador to the United States, Wolfgang Ischinger. The company specializes in geopolitical risk analysis, strategic policy advice, government consulting, and international crisis management. With a global network of over 300 experts, Agora Strategy provides customized solutions for companies to be prepared for geopolitical challenges. The company is headquartered in Munich with an additional office in Berlin.