Governance & Compliance 11: Geopolitical risk and supply chains. Is your Board ready?

Supply chain risk is nothing new for boards. What’s changed is the sheer speed and scale of this risk – and the board’s elevated accountability for it. In this episode, we look at why geopolitical scenario modelling is now core business planning. Host Will Chalk is joined by Ashurst colleagues Nisha Sanghani, former FTSE 350 board member and Head of Ashurst Risk Advisory Middle East, and Neil Donovan, a partner in Ashurst’s dispute resolution practice in London. In this timely episode, we look at how the geopolitical shocks are driving a fundamental rethink of how organisations map, monitor and manage their supply chains. In doing so, we help boards answer a kicker of a question: If the world changes tomorrow, how exposed is our organisation and how quickly can we respond? Nisha explains why the most effective boards aren’t satisfied with assurance, they really challenge and interrogate supply chain resilience, asking: ‘How do we know it would hold up under stress?’ Neil navigates a wave of related legislation, from the UK Modern Slavery Act to the EU Corporate Sustainability Due Diligence Directive, noting that supply chain risks are not limited to modern slavery violations, and that companies in some jurisdictions can be pursued for failing to prevent bribery and corruption by third party agents, distributors and others within their supply chains. Enforcement may still be in its infancy, but Neil warns of reputational damage too. The court of public opinion moves faster than any regulator. To listen to this and subscribe to future episodes in our governance mini-series, search for “Ashurst Legal Outlook” on Apple Podcasts, Spotify or your favourite podcast player. You can also find out more about the full range of Ashurst podcasts at ashurst.com/podcasts. To receive updates and alerts on the issues raised in this podcast mini-series, subscribe to Ashurst’s regular Governance and Compliance Updates. The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.  See omnystudio.com/listener for privacy information.