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Product Risk Assessments

Short of collecting full material disclosure from your supply chain, a Product Risk Assessment (PRA) is the only way to reliably estimate: the number of at-risk products; the at-risk products with the highest financial stakes; the number of parts containing declarable, restricted or banned substances; the most vulnerable customer contracts; the priority products and parts requiring substance data collection; the degree of re-design that may be needed and the level of compliance program you need.

RSJ strongly recommends conducting a PRA.

How a Product Risk Assessment Works

  • Your company:
    • Determines a sub-set of products to be evaluated against REACH, RoHS, Conflict Minerals and/or other regulations
    • Provides RSJ access to appropriate documentation such as Bills of Materials (BOMs) and design drawings
  • An RSJ substance-and-material specialist:
    • Evaluates each part in the BOMs and drawings
    • Identifies highest risk:
      • Materials and parts
      • Products based on number of high-risk components and revenues-at-stake

Example of a Product Risk Assessment

Recently, RSJ conducted a REACH PRA for a client. It involved 14 product models placed on the EU market that contained more than 7,000 unique parts. Below is a very small excerpt* from RSJ’s Product Risk Assessment Final Report.

 Product Model 

 Risk of Containing Restricted Substances 

 Revenue at Risk 

 1155 TFA

High

$32,216,442 

 903 BS

Medium

$19,884,329 

 222 BS

Medium

$17,229,652 

 Model #s and exact dollar amounts altered for anonymity

A Product Risk Assessment requires a small investment with a large return: the information you needs to surgically implement a compliance program that reduces your long-term compliance costs and risks.