pg. 6
“A Risk Matrix was created to analyse the potential risks in the supply chain. All factories with open POs were assessed using a specific method to accumulate unbiased data.
• The “Risk Average” was calculated from three data inputs; Factory Audit Outcome, Country Risk, and Green Certificates.
• The “Leverage Average” was calculated from two data inputs; Purchase Order Quantity and Critical Path Ranking.
• Using the two unique data points, the Group was able to build an assessment of how each factory compares to each other. From this the Group determines the focus to ensure factories remain in low-risk categories.”