ISO 20400:2017 - Sustainable procurement Quiz 02 24Mar25 - Practice Quiz

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Question 1 of 30

EcoSolutions, a multinational corporation committed to ISO 20400 sustainable procurement guidelines, is evaluating a new potential supplier, \"Global Textiles,\" based in a country with a documented history of labor rights violations. The procurement team is tasked with conducting a risk assessment, adhering to ISO 31010 principles, to determine the viability of engaging with Global Textiles. The CEO, Anya Sharma, emphasizes the importance of a robust and defensible process, given the potential reputational and legal risks. Which of the following approaches MOST comprehensively aligns with the principles outlined in ISO 31010 for risk assessment in this specific sustainable procurement context, ensuring the identification of relevant risks and their effective management?

Conduct a comprehensive risk assessment that includes a combination of document reviews, on-site inspections, interviews with workers and local NGOs, and an analysis of relevant country-specific labor laws, documenting the likelihood and impact of potential labor rights violations to inform mitigation strategies and supplier selection.

Rely primarily on Global Textiles' self-assessment questionnaire and certifications from industry associations to determine their compliance with labor standards, supplemented by a review of publicly available news reports on labor practices in the region.

Conduct a basic risk assessment using a standardized checklist of common labor rights issues, focusing solely on easily quantifiable metrics such as minimum wage compliance and working hours, without engaging with external stakeholders or considering contextual factors.

Defer the risk assessment to a third-party auditing firm, accepting their final report without further internal scrutiny or engagement with stakeholders, assuming that their expertise guarantees compliance with ISO 20400 and relevant labor laws.

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