Part of being a good risk manager is knowing that there is always room for new forms of risk to arise. Mickey North Rizza writes for Supply Chain Digital about five new risks lurking at the periphery of your supply chain.
The Fearsome Five
- Financial fraud
- Cyber security threats
- Supply chain management regulations
- The talent gap
- Rising food costs
Collusion, poor expense monitoring, and vendor misconduct are all sources of fraud. Less than a third of executives use data analytics tools to detect fraud and vendor waste, and few executives will scrutinize individual line items, where the fraud really happens. Cyber security tells a similar story, where lax procedures leave the door open to threats.
New regulations are making it mandatory to track sourcing of materials like tungsten, which may make use of slave labor. This of course is a positive measure, though it means you need to be that much more vigilant about maintaining visibility. The talent gap is a more familiar risk—there are lots of jobs available; there are not lots of people filling them. Finally, and particularly unexpectedly, food costs are becoming a problem as droughts worsen in this country. Beef and veal prices are expected to jump by an alarming 5.5-6.5 percent. To read more about these new concerns, you can view Rizza’s full article here: http://www.supplychaindigital.com/supplychainmanagement/3546/Five-New-Supply-Chain-Risks-and-Regulations