Executive Briefings

CIPS Risk Index Rises As Global Commitment Slides

Supply chain managers are facing a new wave of impediments to the flow of goods across borders, said John Glen, economist for the Chartered Institute of Procurement & Supply, as the latest CIPS Risk Index continued to climb to levels not seen since 2013.

Global risk for the third quarter of 2016 reached 81.6, where risk is rated between 1 and 100. This is the fourth consecutive global increase, with Asia Pacific the only region to record a decline in risk.

The quarterly report, produced in association with Dun & Bradstreet, tracks the impact of economic and political developments on the stability of global supply chains to provide an early warning of changes in supply chain risk.

A disintegration of the political consensus over globalisation is a key factor in the increased risk, said the report, with the an average of 22 new trade restrictive measures introduced a month from October 2015 to May 2016 compared with 15 during the same period last year, according to World Trade Organization figures.

“With international trade deals under threat around the world, supply chain managers must be as aware of political risks as they are of natural disasters and economic hardship,” said Glen, who is also director of the Centre for Customised Executive Development at The Cranfield School of Management.

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Global risk for the third quarter of 2016 reached 81.6, where risk is rated between 1 and 100. This is the fourth consecutive global increase, with Asia Pacific the only region to record a decline in risk.

The quarterly report, produced in association with Dun & Bradstreet, tracks the impact of economic and political developments on the stability of global supply chains to provide an early warning of changes in supply chain risk.

A disintegration of the political consensus over globalisation is a key factor in the increased risk, said the report, with the an average of 22 new trade restrictive measures introduced a month from October 2015 to May 2016 compared with 15 during the same period last year, according to World Trade Organization figures.

“With international trade deals under threat around the world, supply chain managers must be as aware of political risks as they are of natural disasters and economic hardship,” said Glen, who is also director of the Centre for Customised Executive Development at The Cranfield School of Management.

Read Full Article