GlossaryEN1 min readUpdated: Jun 23, 2026

Conduct Risk Management in the Supply Chain

A freight forwarder discovers that a subcontractor has been systematically falsifying drivers' rest records – and may face liability as a result.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.pwc.com/gx/en/services/legal/conduct-risk-management.html

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Logistics Concept

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Definition & Explanation

A freight forwarder discovers that a subcontractor has been systematically falsifying drivers' rest records – and may face liability as a result. Conduct risk management in the supply chain is the structured practice of identifying, assessing, and mitigating unethical or unlawful behaviour by any party involved in a supply chain, from raw material suppliers to customs brokers. Typical risks include bribery, falsification of transport documents, sanctions violations, and deliberate misdeclaration of goods at customs. Core tools are compliance programmes, supplier audits, sanctions and PEP screening, and confidential whistleblower channels. Due diligence legislation – including the EU Corporate Sustainability Due Diligence Directive – increasingly extends corporate accountability to the conduct of business partners, raising the monitoring burden for shippers and forwarders alike.

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Calculate customs valueWork out import duties and customs valueOpen Find HS codeDetermine the tariff number for customsOpen Compare IncotermsClarify duties, cost and riskOpen Calculate transit timeEstimate duration per transport modeOpen

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Conduct Risk Management in the Supply Chain

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Related Terms

Life Science Supply Chain Risk Analysis

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Due Diligence in Cold Chain Risk Management

Non-Hazardous Goods Cold Chain Risk Standards

Quarantine Reefer Supply Chain Risk Audits

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