KnowRisk SC - Fusing data from Industry, Accounting, Insurance and Law to better identify, monitor and manage risk across entire supply chains

Challenge

Governance Risk and Compliance (GRC) guidelines for large organisations stipulate that all risks need to be properly managed, fully- disclosed and provisioned for;

Auditors must verify that reserves for unmitigated risks are properly accounted for on the balance sheet.
Risk managers within corporations must ensure that risks are properly identified and mitigated in-line with corporate tolerances.
Insurers need to fully understand the risks their policies are underwriting.
Lawyers must know the risks being transferred and understand the policies that affect claims.
Unfortunately this relies on data and in globalised fast-moving supply chains, accountants, insurers and legal firms can't get access to the data necessary to understand a client's exposure, liabilities, obligations and therefore can't put in place the appropriate mitigations to manage the risks involved.

Focus

We intend to develop an open source Blockchain-Distributed Ledger Technology, layered with standards, data sharing and access control policies for risk identification, legal agreements, accounting, continuous assurance and risk management. Each chained block will comprise critical data that helps form a risk profile on areas such as provenance, safety and smart contracts that facilitate the flow of goods and finances (enabling payments, goods receipting, automatic invoicing, secure financing/ factoring) through the supply chain.

This distributed platform will allow data to be accessed under access control policies without needing to centralize the data. The lead partner is Sweetbridge who will be providing the models and data sharing and access control policies of identity verification, legal agreements, accounting and risk management. Agile Datum will provide corporate liability risk assessment and claims. R3 will provide the blockchain transaction layer. Digital Catapult which will provide consortium governance and independent oversight on all the non-technical ethics, bias and privacy issues that may arise from the data. Engine B will define and provide the AIL data and data standards for accounting, legal and insurance data. Cystellar will provide geospatial tracking and analysis of crops, sustainability, chemical use, and supply chain verification of IoT devices.

Impact

The project drives both competitiveness in the manufacturing industry and in the AIL industry by enabling the real-time identification, tracking and management of dynamic risks for all parties across the entire value chain. This in turn will help reduce the cost of insurance by an estimated 20% and risk exposure can be reduced by 50% to 80%. With reduced risk comes lower cost of working capital particularly to smaller players in the value chain.