Prepare For Federal Supplier Climate Risks And Resilience Rule – Corporate and Company Law

Corporate entities that choose to do business with the U.S.
federal government take on many regulatory and reporting
requirements. This includes requirements related to cost
accounting, purchasing, manpower reporting and, most recently,
compliance with the Cybersecurity Maturity Model Certification
(CMMC). This past year, the Biden-Harris administration signed new
laws and initiated new proposed rules to strengthen resilience
specific to climate risk and supply chain, which accounts for the
U.S.’ position as the largest buyer of goods and services
across the world.

There are many similarities between the proposed rule’s
implications and third-party risk management (3PRM) requirements.
3PRM is a form of risk management that focuses on identifying and
mitigating risks related to the use of suppliers and their
subcontractors by financial institutions.

Like government contractors, financial institutions depend on
suppliers to perform and support critical operations. Under 3PRM
regulations, financial institutions of all sizes must comply with
rules designed to strengthen oversight and control risks associated
with suppliers and their subcontractors.

As such, federal contractors should draw parallels and lessons
learn from 3PRM and its frameworks to prepare for the potential
requirements under the Federal Supplier Climate Risk and Resilience
Order in 2023.

Read the full article on steps that can be taken
now.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.