LkSG Sections 4-5 - risk management system + risk analysis. SECTION 4 RISK MANAGEMENT SYSTEM: companies must establish an APPROPRIATE + EFFECTIVE risk management system to identify + prevent + mitigate + remediate human rights and environmental risks arising from own business operations + direct suppliers + (where substantiated knowledge) indirect suppliers; the system must be PROPORTIONATE + COMMENSURATE WITH the company's specific risk profile + size + sector + geographies. IN-HOUSE RESPONSIBILITY (Section 4(3)): companies must designate a HUMAN RIGHTS OFFICER or equivalent position with DIRECT REPORTING to senior management + adequate resources + independence + cross-functional authority. SECTION 5 RISK ANALYSIS (Annual + Ad-hoc): (a) ANNUAL risk analysis covering own business + direct suppliers; (b) AD-HOC analysis whenever new product + new business activity + new geography + substantial change + substantiated knowledge of risks; (c) WHEN: priority on high-risk geographies + sectors + commodities; (d) METHODOLOGY: identify + assess likelihood + severity + irreversibility + own contribution to risk; (e) RESULTS feed into POLICY STATEMENT (Sec.6) + PREVENTIVE MEASURES (Sec.6) + REMEDIAL ACTION (Sec.8) + COMPLAINTS PROCEDURE (Sec.9) + REPORTING (Sec.10). DATA SOURCES: industry intelligence + NGO reports + supplier surveys + audits + grievance data + government reports.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.