Risk Management
Business continuity is fast becoming an integral part of corporate governance among the top 100 global players.
Research has shown that where an organization has successfully dealt with a crisis or understood its exposure to it, its shareholder value price increased in the long-term, in contrast to those who did not or were perceived not to have managed their crisis well.
Infineon, like the rest of the semiconductor industry, is under increasing pressure to improve flexibility and responsiveness. The results are shrinking product life cycles, increasing product variety, shortened design cycles, rapid inventory obsolescence, and high inventory-holding requirements.
Efforts to improve the efficiency of supply chains under these conditions have emphasized improved information flow and communications, via improved forecasting, coordination, use of software, sophisticated models, and other techniques.
Should a disaster strike and remove a key component of the supply chain or affect it beyond its current capability to adjust, it will have severe repercussions on our ability to continue business. Because we rely heavily on our supply chain, it is therefore extremely important for us to understand our exposure to risk in this area.
Hence Infineon has embarked on implementing a comprehensive Business Continuity Management system, and part of that is to assess the business continuity capabilities of all key suppliers, subcontractors or supply partners who engage in business with Infineon or intend doing so.
All key suppliers are therefore required to provide us with sufficient proof of business continuity management systems or planning, control and mitigation. Proof can be provided in the form of plans, concepts or measures that are product specific, while strategic enough to encompass risk assessment measures, disaster prevention and business interruption avoidance.
Suppliers will also be assessed on their risk management policies and practices as part of our supplier evaluation system.
Infineon reserves the right to audit any supplier, subcontractors or 3 rd party engaged in business with Infineon to assess its capabilities in terms of Business Continuity Planning, Business Continuity Management, Disaster Recovery, Supply/manufacturing Risk Management, Business Interruption, Prevention, Recovery, Emergency Qualification, Emergency Transfers, Secure Supply, Contingency, Alternative Production, Second Sourcing and Safety Stock.
Business decisions may be affected by a particular supply chain risk as highlighted via the previously mentioned mechanisms.
Please be aware that all documents supplied to Infineon may accompany material provided to our customers.
