SCM Risk Audit Performance
RSVP SCM Risk Audit Performance Survey
Elements of risk exist in all business ventures. Risk is anything that could potentially lead to uncertainty and result in unexpected costs impacting a company’s value.
Value = Benefits – Cost (cost includes risk)
Having awareness of what the specific risks to your business are and devising methods to manage the risk must be factored into every organization’s business plan. Part of this awareness requires that the level of risk exposure be measured and quantified.
We have prepared the following survey to help you assess your company’s specific risk exposure. Since risk is really just a cost that has not (yet) materialized this risk audit survey can be viewed as a value survey as well.
Consider the following factors and how they can potentially impact your business:
Political
- Changes in government/political instability
- New legislation
- Rules governing the method to go to market
- External to your own market
Economic
- Currency/exchange rate volatility
- Price of transportation
- Energy and utility supply volatility
- Energy and utility price volatility
- General economic demand for services or products (stability of demand)
- General economic supply for services or products
Social
- Ability to include people in the job market
- Natural disaster/pandemic coverage
- Labour disputes
- Labour shortage
- Customer relationships
- Customer confidence
- Supplier relationships
- Partner relationships
- Compliance within the market (extremes of electric cars to diesel engines)
Technological
- Implementation
- Support services
- Infrastructure security/privacy
New Situations
- Culture and sensitivities
- How is integration of new processes and systems optimized (especially in the case of a merger or divestiture).
- It takes time to influence organization and establish trust
Where is pressure received in your organization?
- Pricing from input supplier
- Pricing to customers
- Customer expectations
- Labour shortages
- Insolvency of suppliers
- Piracy
- Product tampering
- Disruption of 3PL providers
- Increased logistics efficiency
- Reduction in number of suppliers
In the last 12 months, hss, has your organization been able to respond to these pressures?
Based on the feedback we receive through completion of the risk audit survey we can measure your risk and offer concrete solutions on how to minimize and manage your exposure or avoid potentially t altogether. We can also identify areas of your operation that have been overlooked and need attention. New situations come up everyday; besides offering solutions to help you address and manage risk effectively today, it’s important to us that you’re positioned to continue harnessing risk to future your benefit in the future.
Without risk, there is no reward and no reward comes without risk. The goal is to find the correct balance between the two and RSVP can help figure how to optimize this balance.