2022 Innovation Awards: Supply Wisdom ESGPosted On: Sep. 1, 2022 12:00 AM CST
Supply Wisdom ESG
Managing potential supply chain risks related to environmental, social and governance exposures in real time can create challenges for risk managers and insurers.
Supply Wisdom Inc. built on its existing technology, which was designed with artificial intelligence and machine learning, to create a monitoring system for supply chain ESG risks that automatically warns risk managers when potential exposures arise.
When the New York-based company was launched five years ago by founder and chairman Atul Vashistha, it offered another way to identify and manage risks that had the potential to cause disruptions along an organization’s supply chain. At the time, risk managers were largely relying on questionnaires from third-party providers to create a picture of their supply chain risk, potentially leading to delays in identifying problems, Mr. Vashistha said.
“So, we said, OK, we’re going to build an application to provide real-time continuous intelligence to our customers,” he said. “We’re going to build it in the cloud and use data science and automation so that we can be timely and highly accurate, providing not just intelligence but actionable intelligence.”
ESG concerns such as climate change and diversity and inclusion were among those monitored by Supply Wisdom after its 2017 launch, but they were spread among the “risk domains” of cyber, compliance, operations and others that the technology monitored.
By 2021, companies had become more concerned about the “ESG health” of their suppliers, Mr. Vashistha said, and Supply Wisdom ESG was created as an independent domain, allowing users to examine those potential supply chain exposures in one place rather than tracking them through different domains.
Supply Wisdom ESG’s “always-current monitoring” is a significant change from the traditional questionnaires that risk managers relied on, he said.
Using AI and machine learning, the technology examines millions of pieces of publicly available data and alerts risk managers when an ESG concern warrants consideration. For example, if Supply Wisdom ESG finds that a supplier has moved an operation to an area that has water-supply issues or is under a regulatory sanction, it will assess the potential for a disruption, Mr. Vashistha said. Risk managers are then emailed an assessment of whether the potential is low, medium or high.
Users also have access to an online dashboard that includes a scorecard, reports and other information that identifies risks needing attention. And, Mr. Vashistha said, risk profiles can be generated to show insurers how well the risk of disruption is being managed.