New supply chain risk management study by Marsh

Filed in archive Research on April 23, 2008

I just read a new report from Marsh Group (part of the OliverWyman Group) which was covering their new benchmark study on supply chain risk management. The report they have prepared is really new and has been published last week; let's say fresh out of the oven! It includes the results of the a study within 110 risk managers. The interesting in the report was that even though the respondents believed that the degree of risks in supply chain and their negative consequences have increased, non of them were able to manage those risks effectively.





The Marsh professionals think utilizing a number of best practices, risk managers can handle such issues more effectively. Below comes their recommendation, it's not something new but important:

- Change the role of the risk manager to a more strategic role against both insurable and uninsurable supply chain risks.

- Implement consistent supply chain risk management processes and extend the scope of risk management to cover including direct suppliers, critical raw material suppliers, and logistics partners.

- Embed risk management activities and responsibilities into existing supply chain processes.

- Use a cross-functional team to manage supply chain risks. Today, only 31% of participants have established such a team, including just 19% of companies with revenue over US$1 billion.