Organizations must make improvements to their risk management programs in order to keep pace with the latest cyber-attack risks and data security challenges, according to the second annual 2015 Vendor Risk Management Benchmark Study, released by the Shared Assessments Program and Protiviti, a global consulting firm.
A new MIT study on supply chain risk shows no correlation between the total amount a manufacturer spends with a supplier and the profit loss it would incur if that supply were suddenly interrupted. This counterintuitive finding defies a basic business tenet that equates the greatest supply chain risk with suppliers of highest annual expenditure.
Mitigating the risk of sanctions under the U.S. Foreign Corrupt Practices Act (FCPA) is a core concern in every international commercial transaction, including cross-border distribution and franchising relationships.
Managing the risks imposed by suppliers and third-party service providers has become increasingly difficult and expensive. At the same time, the risks imposed by these relationships keep on getting larger and more costly. Yet procurement and risk personnel are expected to do more with less.
Analyst Insight: After traveling around the globe for the last three years, talking about supply chain risk management, facilitating workshops, educating companies and developing a graduate level class covering the subject, I'm thoroughly convinced this new concept is becoming the new discipline of supply chain excellence. So much so that APICS, the premier society for Operations Management professionals, has developed a first-of-its-kind certificate in supply chain risk management to help identify, assess, mitigate and manage risk. - Gregory L. Schlegel, Adjunct Professor, Supply Chain Risk Management, Lehigh University, Graduate Program
