@Risk

Health care executives now face a variety of unprecedented demands, many of which center on their relatively new networks of extensive global supply chains.

In fact, the combination of extended supply chains due to globalization and the introduction of more specialized products into the marketplace has many health care executives particularly concerned about regulatory compliance, product integrity and security, according to new results from the fourth annual Pain in the (Supply) Chain survey from UPS.

More specifically, the survey, which  questioned senior-level healthcare supply chain executives at pharmaceutical, biotech and medical device companies in the US, Europe and Asia, found that:
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Japan and the US have the highest economic exposure to natural hazards.

But, new research from Maplecroft concludes that the emerging economies of China, India, Philippines and Indonesia pose the most risk to investors –because these countries lack capacity to combat the impacts of a major disaster.

According to Maplecroft’s Natural Hazards Risk Atlas 2011 (NRHA), China, India, Philippines and Indonesia are not only at ‘high’ and ‘extreme risk’ from economic exposure to natural hazards (earthquakes, tsunamis, tropical cyclones, floods, drought, etc);  they also lack the resilience to mitigate the disruption a major event would have on their societies and economies.

Maplecroft points to Japan to illustrate the point. The UN states that Japan has nearly 40 percent more people exposed to tropical cyclones than the Philippines. Yet, if both countries experienced similar sized cyclones, fatalities in the Philippines would be 17 times higher than in Japan.

What’s more, due to the rising economic power of those major emerging countries, the occurrence of a major natural disaster there may also have global economic impacts and severely affect the supply chains of business. Maplecroft advises investors who are currently diversifying portfolios into Asian countries to factor in natural hazards risks into their investment strategies. (more…)

Despite widespread awareness, cyberattacks are becoming  increasingly common.

As remarkable as it sounds, a new study from HP and the Ponemon Institute found that over a four-week period, the organizations surveyed experienced 72 successful attacks per week, an increase of nearly 45 percent from last year. (Note: More than 90 percent of all cybercrime costs were caused by malicious code, denial of service, stolen devices and web-based attacks.)

Of course, the financial impact of a cyberattack can be devastating. The Second Annual Cost of Cyber Crime Study also revealed that the median annualized cost of cybercrime incurred by a benchmark sample of organizations was $5.9 million per year, with a range of $1.5 million to $36.5 million each year per organization. This represents an increase of 56 percent from the median cost reported in the inaugural study published in July 2010. (Note: More than 90 percent of all cybercrime costs were caused by malicious code, denial of service, stolen devices and web-based attacks.)

Interestingly, the study looked deeper into the economic costs of cybercrime and found that: (more…)

US lawmakers are growing impatient to break China’s monopoly on global production of rare earth elements (REEs), a handful of minerals essential to the manufacture of high-tech gadgets and critical to the development of many new “green” technologies.

REEs are actually more abundant than many commonplace industrial metals. In fact, back in 2010, the US Geological Survey (USGS) released a report revealing that 13 million metric tons of rare earths exist within known deposits in 14 US states.

However, REEs are typically very difficult to extract. Consequently, the US has not mined REEs in more than a decade, and now we are completely (100 percent) dependent on foreign sources for REEs, 97 percent of which are provided by China.

Fortunately, there are new signs that perhaps this trend may be beginning to reverse its course. (more…)

Companies are struggling to comply with increased regulations and the growing complexities of financial reporting and tax rules.

In fact, a recent survey by Ernst & Young found that nearly two-thirds of financial executives feel changing regulations will challenge their compliance and reporting processes.

Remarkably, 64 percent of the Fortune Global 500 participating in this study said their companies experienced unplanned tax audits within the past year, with almost half receiving unexpected tax assessments or penalties.

The survey results, summarized in the report Seizing the opportunity in Global Compliance and Reporting, identified key areas where companies can improve global compliance and reporting (GCR). For instance:

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