Supplier risk management is the process that companies use to understand the risks they assume due to business relationships with third parties. It helps companies quantify, qualify and manage reputational, transactional, regulatory and other risks associated with outsourcing operations, applications and services that are not core to the business.

In order to properly manage suppliers and meet social, legal and business responsibilities, it is important to find the balance between risk and reward.

The Companies will not establish any type of commercial relationship with natural or legal persons, when there is evidence of elements that generate doubts about the legality of their operations or resources.

The following are some of the situations in addition to a deficient performance evaluation, which may affect the normal development of commercial activities between the Companies and the Suppliers, causing the non-viability in the Suppliers' Registry and inactivation in the Companies' Databases.

  • Presentation of fraudulent documentation by the supplier.
  • Being included in inhibitory lists for money laundering, financing of terrorism or any illicit activity.
  • Having been sanctioned in liability proceedings (Procurator's Office, Comptroller's Office, Disciplinary, among others).
  • Having been criminally convicted for fraudulent offenses.
  • Have been excluded or suspended from the professional practice of the trade or their professional activity.
  • To be in the process of dissolution, liquidation of the legal entity, or cancellation of the commercial registry in natural persons.
  • Non-compliance with specifications and/or quality by the supplier of the required goods and/or services.
  • Repeated failure to meet agreed delivery times for goods and/or services.
  • Invoicing of goods and services on dates different from those initially agreed.
  • Failure to provide warranty for products received as nonconforming.
  • High prices.
  • Systematic non-compliance with any of the requirements indicated in the order.
  • Accumulation and/or importance of incidents.
  • Any act that is contrary to free competition.