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.
This tool describes the major aspects of affiliation risk, lists business risks related to affiliations, shares management practices and performance measures, and provides questions for risk evaluation.