The affiliation is often referred to as a person, organization or establishment associated with another as a subordinate, subsidiary or member. An affiliation can be a social or business relationship and is essentially the act of being formally connected or joined. Examples of affiliations in the business environment include sourcing partners, vendor relationships and alliances. Affiliation risk affects any company that has a relationship with another company. Three major aspects of affiliation risk must be considered: sourcing, supply chain management and alliances.
This tool highlights key performance indicators and questions an organization can use to improve its affiliation risk management process.