In today’s complex global supply chains, risk-based thinking is a fundamental approach to ensuring operational stability and compliance. Identifying, assessing, and mitigating risks proactively is crucial to maintaining a secure and protective supply chain. 

In a jungle of rules, regulations and risks, one might for example categorize risks into operational risks and compliance risks. Likewise, one can identify risks, either: 

•  from the starting point of the process; “What could go wrong when performing this process”. or; 
• from the starting point of the risk; “I know of this requirement/risk, how can can this pose a risk to our operations?”. 

Understanding Risk in the Supply Chain
Then what is really a risk? A risk is simply a chance of something unintended happening.  In the supply chain, operational risks include disruptions such as supplier failures, raw material shortages, logistics delays or poor documentation or transparency.
Compliance risks, on the other hand, arise from contractual or regulatory requirements such as export control, or ethical sourcing concerns. Managing these risks effectively requires a structured approach based on risk-based thinking. Why is it so crucial in the PCB supply chain, and does identification of potential risks make any difference? 

Key Elements of Risk Management
It all starts with a systematic approach to identify and analyse the processes, the risks and further develop a methodology on how to address them, or better, avoid them. To manage supply chain risks efficiently, you need to take precautions, invest time and effort and not least, implement a mindset of risk-based thinking. Developing effective methodologies and systems to support risk-based thinking is essential for achieving AS9120 certification. 

From AS9120: 

Risk-based thinking enables an organization to determine the factors that could cause its processes and its quality management system to deviate from the planned results, to put in place preventive controls to minimize negative effects and to make maximum use of opportunities as they arise. 

A few valuations to start with. 

• Identify Risks – Analyze potential threats across suppliers, logistics, and compliance requirements.
• Assess Impact – Determine the severity and likelihood of identified risks.
• Mitigate and Control – Implement strategies such as alternative sourcing, process redundancies, and compliance audits.
• Monitor Continuously – Establish regular reviews and real-time monitoring systems to detect emerging risks. 

The Role of AS9120 Certification in Supply Chain Control
For companies operating in industries like aerospace and defense, “The AS9100-series Certification” certification is an essential standard for supply chain management. AS9120 focuses on quality management for distributors of aerospace components, ensuring that materials meet stringent traceability and compliance requirements.  

For Confidee as a trusted partner to several major players in the Defence and Aerospace industry, the achievement of AS9120 was a given to provide a secure supply chain and process control. The certification provides: 

Enhanced Supplier Control – Ensures suppliers adhere to industry regulations and quality expectations.
Regulatory Compliance – Helps organizations meet export control laws and ethical sourcing mandates.
Risk Mitigation Frameworks – Implements structured processes to identify, assess, and respond to risks.
Improved Traceability – Reduces the risk of counterfeit parts and ensures proper documentation. 

Questions to ask when identifying risks:

When assessing risk in the supply chain, organizations should consider:
What are the critical dependencies in our supply chain?
Are our suppliers compliant with industry standards and regulatory requirements?
What contingency plans do we have for supplier failures or delays?
Are we conducting thorough due diligence on suppliers, including KYC (Know Your Customer) practices?
How robust is our internal monitoring and auditing system?
 

By questioning the process and the risks, one takes a step forward on the risk prevention road. At Confidee we want to achieve a clear idea of compliance and quality, so that everyone can describe and document their choices. In that manner we believe our planned actions will be successful. And consequently, why we believe we have mitigated risks in the supply chain. 

Then, what to do and how to act if a risk is identified?
Hoping it will go away or be handled elsewhere is the poorest strategy. 

If a potential risk is detected, you shall: 

• Investigate Immediately – Gather relevant data and assess the severity.
• Engage Key Stakeholders – Include compliance officers, supply chain managers, and risk management teams.
• Implement Corrective Actions – Adjust procurement strategies, strengthen supplier contracts, or enhance internal controls.
• Communicate Clearly – Ensure transparency with affected partners and customers.
• Review and Improve – Document lessons learned and refine risk management protocols. 

Risk-based thinking is a proactive approach to supply chain management that helps organizations prevent disruptions and ensure compliance. By integrating frameworks like AS9120 certification, companies can strengthen control over their supply chains, reduce risks, and maintain high-quality standards.
Identifying risks early, asking the right questions, and acting decisively are key to maintaining operational resilience and regulatory compliance in an ever-evolving global market. 

By doing so, everything is (at least a little) less risky. 

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