riskmethods survey data highlights the struggles to quantify risk threats as nearly half of organizations have no structured assessment of supplier criticality.
BOSTON (PRWEB) March 07, 2018
riskmethods, the market leader in supply chain risk management, today announced the results of its global survey on the state of risk management and mitigation in today’s global supply chain. The survey focused on uncovering how prepared procurement leaders are to tackle rapidly evolving business environments brought on by new, more complex threats and to evaluate the current methodologies being employed to manage risk in the supply chain. The survey results are summarized in a downloadable report entitled: Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain.
“No supply chain is without risk, and in today’s procurement landscape, global threats can come from any angle,” said Bill DeMartino, General Manager of North America at riskmethods. “An organization’s ability to identify risks and make informed business decisions based on the potential impact of those risks, is what will set them apart from the competition.”
Key survey findings include the following:
- 47 percent of survey respondents indicated that they had experienced between one and five significant supply chain disruptions within the past 12 months. Additionally, 13 percent indicated that they had 20 or more significant disruptions in the past year and 12 percent of respondents did not know whether there were any serious disruptions to their supply chain during this time, speaking to their limited visibility into their operations.
- 49 percent of respondents noted that their organization had no structured assessment of supplier criticality or impact when asked if their organization had a mechanism in place for measuring the impact a supplier has on the business
- When asked what level of automation their organization employed to update critical risk information, less than one percent of respondents indicated that it is completely automated. Another 39 percent indicated that they were in the low to moderate range of automation, relying heavily on manual tools such as excel in conjunction with external risk data sources. 25 percent of all respondents indicated that they have no automation capabilities and are completely reliant upon manual search.
- When asked whether they have structured risk mitigation plans in place, only 20 percent indicated they do, another 27 percent indicated that no such plans exist and 53 percent indicated that there were at least partial plans in place.
The research was conducted in late 2017 via an online poll of more than 250 senior procurement executives with day-to-day oversight and management of global supply chains within organizations of all sizes and industries.
Download the report: Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain to read riskmethods’ full findings.
riskmethods provides award winning Supply Chain Risk Management solutions to address the entire lifecycle of identifying risk, assessing impact and enacting plans to prevent or mitigate risk. Our approach combines innovative Big Data and Artificial intelligence capabilities with insightful risk intelligence to ensure that the right people have the right information at the right time. Over 100 businesses trust riskmethods to fuel their supply chain risk management programs. Armed with a digitized representation of the risk profile for their supply network, our customers are able to make better decisions and achieve first-mover advantage in the face of threats. This immediate visibility to emerging risk exposure helps clients assure supply, maintain compliance and protect their revenue and reputation. http://www.riskmethods.net | @riskmethods1 | Visit us on Facebook and LinkedIn