LkSG soft­ware
from otris

A thor­ough in­vent­ory is carried out before ana­lys­ing and rating. This applies to rel­ev­ant data on sup­pli­ers, up­stream sup­pli­ers, sup­pli­er re­la­tion­ships and product types as well as in re­la­tion to the company itself.
The system struc­tures the data from the in­vent­ory into clearly or­gan­ised in­form­a­tion. Visu­al­isa­tions il­lus­trate the re­la­tion­ship between the company and the re­spect­ive sup­pli­ers and which product types the de­liv­er­ies fall under. You can nav­ig­ate to all linked in­form­a­tion via com­pan­ies, pro­duc­tion sites, product types or sup­pli­ers.

The ap­plic­a­tion uses several filters to pri­or­it­ise the in­form­a­tion.
One of these filters is the LkSG index. De­pend­ing on the ab­stract risks spe­cified in the law, it shows how risky a par­tic­u­lar in­dustry is in a country. The data is based on the NACE cat­egor­isa­tion for in­dus­tries and the country code ac­cord­ing to ISO 3166. The index was de­veloped by a renowned law firm and is updated reg­u­larly. The LkSG index and other per­form­ance in­dic­at­ors, sup­pli­er self-reports and data from ex­tern­al data­bases are used to de­term­ine the risk po­ten­tial of in­di­vidu­al sup­pli­ers.
Such pre-cat­egor­isa­tion enables a clear pri­or­it­isa­tion of the overall sup­pli­er port­fo­lio: Which sup­pli­ers fulfil certain cri­ter­ia that in­dic­ate a high risk po­ten­tial (e.g. sales volume of the busi­ness re­la­tion­ship, im­port­ance of the ser­vices sup­plied for the company’s own products, but also general cri­ter­ia such as region or in­dustry)? And how much in­flu­ence does the company have over the Sup­pli­er? The filters support a step-by-step re­fine­ment to identi­fy the risks / sup­pli­er re­la­tion­ships / busi­ness prac­tices that need to be ad­dressed with high Pri­or­ity. A well-struc­tured pri­or­it­isa­tion sup­ports you in doing the most im­port­ant things first and veri­fi­ably doc­u­ment­ing the ful­fil­ment of your due di­li­gence ob­lig­a­tions.

Once the ma­ter­i­al risks have been struc­tured in the system, they can be rated. The ap­plic­a­tion follows the risk ana­lys­is guidelines of the Agency for Busi­ness & De­vel­op­ment. After clas­si­fy­ing the spe­cif­ic risks in terms of prob­ab­il­ity of oc­cur­rence, extent, scope and ir­re­vers­ib­il­ity, the LkSG risk ana­lys­is soft­ware visu­al­ises the Overall rating of sever­ity using a diagram and a traffic light symbol, so that the need for action is quickly ap­par­ent.

The otris LkSG tool con­tains a digital com­plaints centre that whis­tleblowers can use to submit com­plaints an­onym­ously. You assign in­com­ing in­form­a­tion to the re­spect­ive Sup­pli­er in order to include it in the ab­stract risk ana­lys­is, the con­crete risk as­sess­ment and the man­age­ment of meas­ures.

The risk ana­lys­is and com­plaint man­age­ment provide in­form­a­tion on where meas­ures need to be taken to remedy the situ­ation. In ad­di­tion, the LkSG pre­scribes meas­ures for pre­ven­tion. otris di­li­gence con­tains a com­plete measure man­age­ment system that sup­ports you in de­fin­ing, im­ple­ment­ing and mon­it­or­ing meas­ures. Stand­ard meas­ures for re­medi­al or pre­vent­ive action, which are also already pro­posed by BAFA, can be stored in the ap­plic­a­tion and in­cluded in risk man­age­ment as re­quired.

In ad­di­tion to the Master data, the sup­pli­er file also con­tains all doc­u­ments and ratings as­so­ci­ated with the sup­pli­er in a clearly or­gan­ised format.

Here you can see at a glance which risks and meas­ures are pending with the re­spect­ive sup­pli­er, what rating they have, what the supply struc­ture looks like and which product types are af­fected.

You can also store re­ques­ted doc­u­ments and cer­ti­fic­ates in the sup­pli­er file. An auto­mated valid­ity check can be used to prompt the sup­pli­er to submit a new, valid cer­ti­fic­ate before the old doc­u­ment expires.

In Germany, the BAFA (Federal Office of Eco­nom­ics and Export Control) is re­spons­ible for com­pli­ance with and veri­fic­a­tion of the LkSG reg­u­la­tions. The current guideline is avail­able in the form of a cata­logue of ques­tions that provides in­form­a­tion on the steps and meas­ures ex­pec­ted of com­pan­ies. The otris LkSG tool is used to create a tem­plate for the BAFA ques­tion­naire with data from risk, com­plaint and action man­age­ment. The tem­plate can be sup­ple­men­ted with further con­clu­sions and other in­form­a­tion and is used for in­tern­al de­cision-making within the company.