Tag Archives: emerging risks

Rethinking Risk Management

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Anticipating emerging risks means reshaping the board.

Risk management is often cited among the top two or three items on board agendas, yet many companies have found themselves unprepared for a variety of recent shocks, including the COVID-19 pandemic, the Great Resignation, cybersecurity events, labor shortages and supply chain disruptions.

The breadth of risk for public and large private companies has grown exponentially in recent years, but few organizations have gone far enough in evolving and expanding their risk management approach to keep up with the pace of change. This is one reason regulators have stepped up enforcement of board requirements around fiduciary duties.

In some cases, boards may need to update their views about the world’s ability to deal with risks. These views may include the expectation that supply chains are infinite, labor is unlimited and the United States is always able to innovate its way out of problems.

That’s not the world today’s companies operate in. World Economic Forum, the Control Risks global risk survey, McKinsey and others have identified several of the most significant areas of current and emerging corporate risk. The top risk areas include:

  1. Proper understanding and articulation of company risk appetite, risk review objectives, and existential and emergent risks.
  2. People and talent.
  3. Mergers and acquisitions.
  4. Digital transformation.
  5. Cybersecurity.
  6. Climate risks and action.
  7. Future pandemics or similar situations.
  8. Supply chain vulnerabilities.
  9. Regulatory risks.
  10. Political risks.

These risks present challenges on many levels. Boards must identify, assess and manage risks intelligently, while simultaneously focusing on business opportunities that may arise from the very same issues. They must communicate risks not just to shareholders, but also to other stakeholders.

Today’s boards need to consider whether they have the right people, expertise, committees and processes to address today’s higher-risk business environment. Crises are likely to come faster and hit harder. However, boards that make changes to better address risk can succeed in making their companies more resilient.

The following are changes boards should consider to enhance their risk management approach and better help their companies navigate and mitigate emerging risks.

Read more at Rethinking Risk Management

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The Role of Business Intelligence in the Supply Chain

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Supply Chain BI Dashboard - Warehouse Order Performance

Supply Chain BI Dashboard – Warehouse Order Performance

Business intelligence enhances supply chain management by making real-time data analytics accessible. Self-service BI takes this a step further by allowing users to run their own queries and create their own reports, even if they don’t have a background in statistical analysis.

Here, we’ll discuss how BI can provide real-time insights into supply chain emerging risks, inefficiencies, and anomalies, allowing organizations to quickly isolate and resolve potential problems.

Supply Chain Disruptions

We saw unprecedented disruption to supply chains in 2020 that caused problems for companies and consumers. The Federal Reserve reports continued supply chain and logistics disruptions in 2021 are emerging at the same time demand is increasing.

For companies struggling to manage supply chains, it’s a significant issue. Supply chains represent as much as half of the value of a company’s products or services.

Failing to manage the supply chain efficiently, leads to ongoing problems, including:

  1. Less resilient to market changes
  2. Less efficient
  3. Decreased inventory
  4. Inability to meet demand
  5. Decreased financial performance

Managing the Supply Chain with Embedded BI

Embedded BI integrates business intelligence reporting tools into everyday apps. Embedded business intelligence tools provide ad hoc reporting, interactive dashboards, scheduling, and distribution tools within your custom apps.

When you embed business intelligence tools into your decision chain, it provides quick access to the insights team members need. Potential supply chain problems can be spotted in real-time for faster resolution.

Visualizing Demand and Inventory

Data visualization makes it easier to manage inventory by providing a visual reference for current inventory levels and pending orders. This makes it easier to forecast inventory needs and set reorder points.

Visualizing Distribution

You can also visualize the movement of goods and material through your supply chain into your inventory and out the door to customers. By monitoring order status, you can also see potential disruptions in your supply chain or your processes.

Read more at The Role of Business Intelligence in the Supply Chain.

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