Supply Chain Risks Seen Posing Leading Threat to Top Companies

Execs cite supply risks as major concern, but half in FM Global survey say threats associated with globalization and outsourcing are low priority

  • The most prevailing emerging risk cited by companies worldwide is "governmental or regulatory" — outpacing even "competition," which ranked second.

  • North America-based companies are roughly twice as likely as their overseas counterparts to cite "insufficient time," "inadequate personnel" and "insufficient budgets" as the biggest obstacles to addressing top risks.

  • On average, respondents indicate the majority of their risk management budgets are allocated to risk control (loss prevention) rather than risk transfer (buying insurance).

  • Recent corporate governance reforms have increased companies' focus on risk management either moderately to highly at 88 percent of North America-based companies surveyed, as well as at 78 percent of companies based overseas.

Additional Articles of Interest

managing uncertainty Rethinking Risk Supply & Demand Chain Executive

business risks associated with product quality The Quality Risk Supply & Demand Chain Executive

paper in the supply chain Paper: Still the Net Best Thing iSource Business Supply & Demand Chain Executive