Search Results for: risk management

Concentric Supplier Risk Management

Today, executives in all functions and lines of business are driven to create shareholder value. Nothing can destroy the perceived value of an investment faster than negative press, which can do irreparable damage to a brand. In some cases, the cause of the criticism may not even be due to a company’s own actions, but rather those of their suppliers (or suppliers’ suppliers). When a supply chain extends across the globe, procurement may have to extend the scope of their … More

Risk Management – To Hedge or Not to Hedge (Part 3)

In Part 2, I ended my blog post with: The basis of price risk management therefore lies in asking the following questions: What is the “right” level of price cover and how do we determine what this level should be (particularly if we do not enjoy market information advantage)? What are the cost/benefits of derivatives over inventories? What is the difference between hedging and trading? How can we ensure our corporate objectives are aligned to our price risk management program? … More

Risk management – To Hedge or Not to Hedge (Part 2)

In Part 1, I ended with the statement that procurement “errors” affect the market capitalization, the competitiveness and the well-thought out plans for the business and, that price risk can affect any of the aforementioned. It is therefore imperative for organizations to have a clearly articulated and well-defined plan for (price) risk management. This blog will highlight the traditional approaches to hedging and suggest that organizations ask themselves a range of questions when developing their hedging strategy. Traditional approaches to … More

Risk Management — To Hedge or Not to Hedge (Part 1)

Since the turn of the century, they have experienced the wrath of volatile price fluctuations (mainly price up) in their commodity markets. The Holy Grail in procurement is to achieve a position in the firm where its function is no longer justifying its existence and focusing on an internal sales job. This goal is made a lot harder to achieve when procurement must defend why costs exceed expectations. I can only imagine how many CPOs have been hauled into boardrooms … More

Friday Rant: Risk Management – Don’t Wait for African/Middle East Supply Chains to Self-Combust

Like many in the US, I’ve watched intently as the protests and events in Egypt, Jordan, Tunisia and other North African and Middle Eastern countries have unfolded in recent weeks. The optimist in me hopes that the demonstrations and democratic progre…

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Supply Chain Matters Business Briefing Series- Supply Chain Risk Management and Mitigation

In a recent posting in December, we noted that the Supply Chain Matters blog will offer some new and different research and business briefing commentary in 2011.  The goal of this added series is to provide our readers more depth and insight mechanisms addressing the most  important topics directly related to global supply chain business […] More

Matters arising: Supplier risk management

Do organisations learn to live with the increased risk linked to the rise of complex, integrated supply chains? CPO Agenda asks Frank Omare. More

Supplier Management and Supply Risk Management Capability and Maturity Models

Many companies dipping their toes (or diving head first) into the shark-infested waters of supply risk management often ask where the best places to get started are (not to mention how to get started in them). Companies then ask about the best techno…

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Continuing Lesson in the Social Aspects of Risk Management- Rolls Royce

Time for another update on Rolls Royce PLC, and the implications of the previous Trent 900 in-air aircraft engine failure.  In our prior Supply Chain Matters commentary, we noted that manufacturers may have the best, most highly engineered product, but when some unforeseen incident occurs, they cannot leave the narrative of the incident and its […] More

Rolls-Royce: Another Evolving Lesson in the New Social Aspects of Risk Management

When I speak on the topic of social media’s impact on supply chain management, there is sometimes a rather skeptical response on the part of senior managers.  That’s understandable. Initial perceptions on the overall value of either blogs, Twitter, YouTube or Facebook can be rather varied, and many firms frown or discourage use of these […] More

Rolls-Royce: Another Evolving Lesson in the New Social Aspects of Risk Management

When I speak on the topic of social media’s impact on supply chain management, there is sometimes a rather skeptical response on the part of senior managers.  That’s understandable. Initial perceptions on the overall value of either blogs, Twitter, YouTube or Facebook can be rather varied, and many firms frown or discourage use of these […] More

Spend Matters Compass: Supply Risk Management — Understanding the Technology and Content Landscape

The world of supply risk management is continuing to get more and more attention these days. The attention is not exactly new, but it appears that the intent behind it is changing. It seemed that there was a tremendous amount of supply risk window-sh…

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Piecing Together the Supply Chain Risk Management Puzzle

At the Procurement Leaders forum in Boston late last month, David Simchi-Levi, a professor at MIT, gave a presentation that was a bit out of the ordinary for procurement conferences. I must say, it provided some interesting food for thought. His talk…

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Friday Rant: Supply Chain Risk Management at Procurement Leaders – More Practitioners, Please

This week I attended the Procurement Leaders Forum in Boston, MA. One of my objectives was to learn more about supply chain risk management (SCRM) and what leading companies are doing about it. Held in a classy venue on the 33rd floor of a fancy high…

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Spend Matters “Risk Management” Friday Latte

Going “green”: feel-good deed, or backhanded risk management?
Sustainability Practices Are Really Risk Management — It’s not about going green. It’s about making money and minimizing risk.

You know, I kind of believe them.
New BP Chief Seeks a …

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