Risk Analysis and Risk Management under the EUDR

Risk analysis and risk management are central elements of the EUDR.

Risk analysis and risk management are fundamental components of the EU Deforestation Regulation (EUDR). Their aim is to ensure that raw materials and products placed on the EU market are not associated with deforestation or illegal production. Companies are obliged to implement a structured due diligence system that systematically identifies, assesses, and manages risks in the supply chains.

The risk analysis includes several core steps, beginning with the collection of information on products, suppliers, and growing areas. This is followed by an in-depth risk assessment, which takes into account traceability, deforestation risks, and compliance with local laws in the respective regions of origin. A risk classification is then performed based on these assessment processes, categorizing source countries into risk categories that entail varying requirements for examination and documentation.

Risk management includes organizational and technical measures to minimize identified risks. Companies should collect additional information from suppliers, conduct on-site audits, and provide training for suppliers if necessary. Integrating these processes into existing IT systems can support continuous risk monitoring and documentation of the collection results.

Compliance with the EUDR is monitored by the relevant authorities. Violations can lead to significant penalties and reputational risks. It is therefore essential for companies to ensure transparency and traceability in their processes in order to meet legal requirements and strengthen the trust of their customers and partners.