@Risk

This blog is devoted to building awareness about the importance of effective, holistic supplier risk management programs. So, every now and again, I have to ask:

Do you feel your company’s supply risk management strategies are providing the value they should? Is managing supplier risk a strategic advantage for you, or is it more just a box to be checked for compliance requirements? And, in terms of supply risk management, where do you think your company stands compared to its peers?

Aravo and The Hackett Group have been working for awhile on a new survey designed to help you gain insights into questions like these,  and I’m happy to report that our co-sponsored Supply Risk Management Performance Study is now open for participation.

This study will run until April 2, 2010 and is available at no cost to participants.

We’re looking for supply risk stakeholders –in procurement, supply chain, risk management, EH&S, or general management –to take part. All study participants will receive a research report and an exclusive invitation to a webcast that will discuss key findings from the research. It’s a great way to learn: (more…)

Today’s supply chains are more global, more complex –and simply bigger –than ever before. But, does that mean they are better?

Not necessarily, according to Thomas Wailgum at CIO.com.

In his article, Wailgum points out that expanding supply chains make visibility increasingly difficult, and as he says, “ That visibility is key.”

I agree. Most companies today are struggling to keep up with their sprawling global supplier networks. They still need to take the first, fundamental steps to improving visibility and creating a more holistic approach to supplier relationships.  They still need to automate supply chain processes. (more…)

Yesterday, the Department of Defense released its Quadrennial Defense Review, and for the first time, this document –prepared periodically by the Pentagon to update Congress –addressed the threat of global warming, stating that climate change will accelerate instability and conflict around the world.

Specifically, the QDR identifies “crafting a strategic approach to climate and energy” as a key issue requiring attention:

Climate change and energy will play significant roles in the future security environment. The Department is developing policies and plans to manage the effects of climate change on its operating environment, missions, and facilities. The Department already performs environmental stewardship at hundreds of DoD installations throughout the United States, working to meet resource efficiency and sustainability goals. We must continue incorporating geostrategic and operational energy considerations into force planning, requirements development, and acquisition processes. (more…)

Aon Risk Services, the global risk management and insurance brokerage business of Aon Corporation has launched its 17th annual Political Risk Map, and it shows that political and financial instability remain a feature of the business landscape.

There are 18 downgrades in this year’s map, driven mostly by rising risk levels in 2009, which in turn led to a significant volume of credit and political risk claims in international insurance markets.

The 18 countries with worsening conditions are: Algeria, Argentina, El Salvador, Equatorial Guinea, Ghana, Honduras, Kazakhstan, Latvia, Madagascar, Mauritania, Philippines, Puerto Rico, Seychelles, Sudan, United Arab Emirates, Ukraine, Venezuela and Yemen.

“For instance, non-payment of sovereign and sub-sovereign debt obligations is a major issue for underwriters insuring risks in Ghana, and underwriters continue to experience a multitude of claims stemming from payment defaults by private sector banks in Ukraine,” explains Miles Johnstone, director of Aon’s Political Risk team. (more…)

I expected the percentage to be low, but when the final results were calculated, I have to admit, my jaw dropped.

In a recent survey of financial, procurement and risk executives who participated in Aravo’s supply chain risk webinar series, we found that: (more…)