There are numerous risks that any company faces. One not often considered is the reputational risk a company is exposed to through its supply chain. Many U.S. clothing manufacturers stumbled upon this fact a few years ago with the collapse of buildings in Bangladesh, which housed contractors and sub-contracts sewing clothes. It appeared that many U.S. companies were not even aware their brands were being manufactured in such conditions.

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...