How risk management ties into supply chain management

Financial exposure is often cited as the top concern among risk management professionals, but there are a number of other operations that may indirectly affect a company's level of risk. Supply chains, for example, are increasingly becoming one of the most fundamental components of a properly functioning business. More importantly, assessing and targeting risk in the supply chain is becoming a paramount concern. A new study from consulting firm A.T. Kearney shows how supply chain managers and executives are broadening their risk policies to include risk-impact analysis and disaster planning, as well as financial and consumer credit risk management. Additionally, the report noted that the most successful organizations are excelling at risk management by anticipating and monitoring mitigation strategies that cover a wide range of threats. "Supply management organizations that once were focused on cost reduction and adversarial relationships with suppliers are now developing long-term category management strategies, where collaboration with suppliers on joint process improvement, innovation and new products is delivering top-line value to corporations," said at A.T. Kearney partner John Blascovich.