When it comes to business, it is best not to go the Indiana Jones route and gamble your fate at every turn. Risk management is just a necessity to dodge those oncoming boulders. Sabine Vollmer reports on some of the key takeaways from a recent Accenture survey about how to reduce risk.
Five Routes to Reduction
- Formalize risk management as a specific topic for discussion in relevant management meetings.
- Install a risk management officer as part of the senior-level organization hierarchy.
- Establish and propagate a culture of risk management throughout the supply-chain organization.
- Develop and nurture supply-chain risk management skills as part of employees’ standard job descriptions.
- Build and deploy the analytical tools that will help the organization respond to risks.
Nearly three-quarters of survey respondents reported that they only saw ROI on risk management efforts of 50 percent or less. IT, cost factors, and the global economy are the most poignant factors in affecting quality, planning, talent, and sourcing and procurement. IT tops the list due to its threat of providing fragmented or insufficient data and a lack of agility. You should follow the steps above to help mitigate the associated concerns. For more, you can read Vollmer’s full article: http://www.cgma.org/Magazine/News/Pages/201410443.aspx?TestCookiesEnabled=redirect