Organizations Ill-Prepared to Mitigate Emerging and Evolving Risks in Global Supply Chains

Data highlights the struggles to quantify risk threats as nearly half of organizations have no structured assessment of supplier criticality.

Riskmethods Logo 1 57c83608b8931
Riskmethods Logo 1 57c83608b8931

 Riskmethods 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 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,” Bill DeMartino, general manager of North America at riskmethods said. 

 

Key survey findings include the following:

  • 47 percent of 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 1 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.

Download the report: Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain to read riskmethods’ full findings.

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