Risk terminology

Exposed Suppliers: Entities that appear on a restricted/denied party list, which meet criteria (such as that outlined within the UFLPA) that indicates non-compliance with a specific regulation, and/or which are owned by entities that meet either of the conditions above.

Exposures: Unique relationships between tier 1s and exposed suppliers in the context of value chains. Each combination of tier 1, exposed supplier, and the tier the exposed supplier appears in represents a unique exposure.

Risk, Restriction, and Risk Criteria: The restricted-party or denied-party list on which the exposed supplier appears, or the regulation or act that they may be non-compliant with.

Direct Risk vs. Indirect Risk: If the entity is named on the list meets risk criteria, then this is classified as a direct risk. If the entity is owned by a direct risk, then the relationship is classified as an indirect risk.