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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.