Risk is something every business has to account for these days, especially as more aspects of the organization shift online. Inside Counsel's Rich Steeves said companies around the country are now taking a closer look at how they operate globally and many have come to realize that supply-chain management is key to avoiding risk.
Steeves quoted Paula Ivey, president of The CSR Group, at the recent Commit Forum conference, saying the risk management is an important piece of companies becoming more socially responsible. Companies must take a proactive, transparent approach. Organizations could help themselves out by utilizing automated data collection to learn more about their supply chain.
"Corporate social responsibility is driving consumers, who are driving retailers, who are driving the brands," Ivey said, according to Steeves.
To protect both the company and customer, Ivey said businesses must stay up to date with new developments, have a culture that supports compliance and always be ready to change.
A recent survey from Deloitte found that supply chain risk is a strategic issue and many companies do not consider it managed effectively. However, the report said companies lack the latest tools, such as data collection, to properly assess and fight against risk.
"A number of internal and external forces are converging to raise the risk ante for global supply chains," Deloitte said. "Some are macro trends such as globalization and global connectivity, which can make supply chains more complex and amplify the impact of problems that may arise. Others stem from the push to improve efficiency and reduce operating costs. "
Organizations need to update their technology to help keep supply-chain risks minimal. With the rapid growth supply chains have seen over the past few years, having new software and technology is necessary to increase transparency.