AICPA launches new supply chain risk management reporting framework

To help manufacturers, producers, distribution companies and their customers and business partners identify, assess and address supply chain risks, the American Institute of CPAs (AICPA) has launched ‘SOC for Supply Chain’, a new risk reporting framework. The SOC for Supply Chain framework is a market-driven, flexible and voluntary framework for organizations to communicate certain information about their manufacturing, production or distribution system and the effectiveness of controls that mitigate supply chain risks. “Today’s supply chains are highly sophisticated and complex, there is often a high level of interdependence and connectivity between them, which increases an organization’s vulnerability to risk,” said Amy Pawlicki, AICPA Vice President – Assurance and Advisory Innovation. “Our new SOC for Supply Chain framework can help an organization assess risk, understand the effectiveness of its controls and identify shortfalls.”