Same as the business activity, Risk Management can’t end at the company gates. Most process chains start with external providers of supply and services and continue in your company. Also, external supplier risks may affect not just your organization but your customers as well.
To the outside, pro-active diligence by Risk Management may improve customer confidence. It’s an advantage that customers may like versus your competitors who can`t demonstrate such level of sophistication. Thus, it may even improve your business prospects.
Companies that already apply risk management are well advised to check (beyond their internal procurement processes) their supplier base for dependency risks, too.
When a company is about to start Risk Management with a pilot project, it’s probably advantageous to start it in purchasing: While most of your internal business is well-known and clearly laid-out, a considerable amount of valuable information can be gained often from the analysis of suppliers and the associated risks.
In the Supply Chain Risk Management part, special awareness is set on the following closely conjoined segments:
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