Identifying and addressing human rights risks is the foundation for appropriate and effective human rights risk management.

Once that process is underway, the key question is: Which risks should a company focus its attention on first?

The reality is that most companies face numerous potential impacts and, due to limited resources, must decide which ones to tackle first.

Why you should start by prioritizing your human rights risks

The aim of human rights due diligence is to prevent and mitigate risks or stop violations of human rights and environmental rights. To achieve this, companies must identify, assess, and, in most cases, prioritize human rights and environmental risks.

Human rights risks are rarely isolated. They are often deeply intertwined with broader environmental, social, and governance (ESG) challenges. Proactively identifying and prioritizing human rights risks enables companies to navigate complexities in their operations and supply chains.

Additionally, human rights risks exist at every level of the value chain: from own operations and direct suppliers to impacts at raw material level and upstream impacts that go beyond Tier 1. Therefore, businesses are required to conduct due diligence throughout their entire value chain, beginning with identifying where and how they may be linked to severe impacts on people.

Strategically prioritizing these risks allows companies to develop appropriate action plans and focus resources where they are needed most. (If you are interested how the concept of vulnerable groups plays into this, check out our two part blog series Why Due Diligence Must Center Vulnerable Groups).

The process of identifying and prioritizing human rights risks also creates opportunities to strengthen operational efficiency and stakeholder relationships. Due to the cross-cutting nature of human rights risks, internal engagement and collaboration across different teams becomes necessary to develop an appropriate risk assessment approach.

For example, when identifying human rights risks in the supply chain, collaboration between sustainability functions and the procurement team is crucial to effectively aligning the assessment with practical, real-world scenarios. This collaboration can be a powerful step toward integrating human rights considerations into broader corporate strategies. 

Human rights risk assessments under corporate sustainability due diligence laws   

This strategic prioritization for assessing human rights risks is not just best practice—it is increasingly mandated by global regulations. While debates around the omnibus proposal and broader regulatory uncertainties continue, the foundation of all corporate sustainability laws, including the EU Corporate Sustainability Due Diligence Directive (CSDDD), the EU Corporate Sustainability Reporting Directive (CSRD) and the German Supply Chain Act (LkSG), remains rooted in the United Nations Guiding Principles on Business and Human Rights (UNGPs), which have shaped global due diligence expectations for over a decade.

In line with the UNGPs, current human rights and environmental due diligence (HREDD) regulations emphasize a shift from reactive, compliance-driven processes to proactive, holistic strategies that integrate human rights and environmental considerations into core business practices. This ensures compliance with any regulatory due diligence requirements – and, more importantly, it reflects corporate good practice that has evolved over the last ten years to implement human rights due diligence in a meaningful and effective way.

Human rights risk assessments as a steppingstone to business transformation 

A well-executed human rights risk assessment is more than an exercise to comply with regulations, it can also serve as a catalyst for business transformation. By identifying risks and their root causes, companies not only ensure compliance but also enhance collaboration, strengthen accountability, and drive innovation.

1- Human rights risk assessment promotes cross-departmental collaboration.

One of the most immediate benefits is breaking down silos. Human rights and environmental due diligence (HREDD) requires engagement across departments, from sustainability and procurement to compliance and human resources. These conversations don’t just improve risk awareness; they create new synergies across teams that improve decision-making and streamline operations. We see due diligence as a tool to strengthen relationships and collaboration, which is essential for lasting impact. In our advisory work, we integrate human rights risk assessments into existing business processes. Particularly when assessing risks in a company’s own operations, our clients often find that cross-departmental collaboration becomes a key element of effective and meaningful human rights risk management.

2- Human rights risk assessment fosters a culture of accountability.

Beyond internal collaboration, HREDD – if applied in a holistic and people-centered approach – fosters a culture of accountability at every level of the business. Too often, human rights considerations are seen as the responsibility of a single team. But when we support our clients in identifying where and how their company may be linked to human rights risks, it quickly becomes clear that these risks are woven into various business functions.

For instance, human resources is responsible for workplace-related policies such as recruitment, remuneration and equal treatment; the procurement team engages with suppliers on various topics including on sustainability and human rights requirements; the IT department supports digital solutions for different due diligence requirements, and legal and compliance colleagues draft and review corporate contracts and monitor evolving regulations. Understanding that human rights are part of these everyday responsibilities shifts due diligence from an isolated obligation to a shared business priority.

3- Human rights risk assessment drives innovation and enhances business resilience.

Additionally, the process of identifying human rights risks can drive business innovation and resilience. When we support companies in identifying and addressing human rights risks along the supply chain, meaningful and targeted engagement with suppliers plays a key role. Our tailored, eye-level approach strengthens long-term partnerships, contributing to  more resilient supply chains. Cross-functional collaboration fuels new ideas for sustainable products and services, while peer learning—both internally and across industries—helps businesses adapt to responsible business conduct in line with evolving regulatory and societal expectations.

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CORE x Verisk Maplecroft Risk Assessments: A Tailored, Methodological Solution

At CORE, we integrate strategic insights with practical solutions, empowering businesses to turn human rights risk assessments from a burdensome exercise with little impact into a steppingstone for better risk management and stakeholder relations.

Jointly, we support our clients by offering:

• Unparalleled Data: Verisk Maplecroft’s global datasets provide precise, granular insights, covering risks across regions, industries, and supply chains. We combine this robust data with company-specific information to build a risk assessment framework that reflects the company structure and reality. Using reliable data and a tailored approach ensures that the risk assessment results are meaningful.
• Tailored Methodology: Building on the company-specific context and available value chain information, we develop risk assessments and action plans that align with our client’s specific operational and strategic needs.  We do this by engaging relevant colleagues and stakeholders building capacity and understanding along the way, while ensuring that existing processes are leveraged.
• Practical Outcomes: Our recommendations are actionable, integrating seamlessly into your broader risk management and sustainability strategies We love to connect the dots, to use synergies and ensure a holistic and effective approach to HRDD.

CORE’s support does not end when we deliver this assessment.

From action plans, roadmaps and stakeholder engagement to executive briefings, human rights training and interactive employee workshops, our team of senior business and human rights advisors can continue to provide hands-on support in implementing the outcomes of the human rights risk assessment.

At CORE we turn complexity into clarity.

Through our partnership with Verisk Maplecroft, our data-driven risk assessments help you identify, prioritize, and act on human rights risks—ensuring you focus resources where they matter most. With a reliable methodology and people-centered approach, we make companies’ links to human rights risks accessible and enable meaningful, strategic action.

Visit our page and get in touch to learn more: https://peopleatcore.com/human-rights-risk-assessment/ 

Theresa for the CORE team