Every business in all sections of the economy has risks. Companies need not only look within their own organisation when it comes to managing risk, but also to things that could influence it on the outside.
In his first interview since joining the Institute of Risk Management (IRM) as its new chief executive, Ian Livsey tells me companies should be looking at the wider issues in the supply chain when it comes to managing risk. And one of the key risks he believes businesses face there is from human trafficking and modern-day slavery.
Figures from the International Labour Organisation show almost 21 million people worldwide are been victims of forced labour, generating $150 billion in illegal profits per year, with almost 19 million of these being exploited by private individuals or enterprises and two million by state or rebel groups.
In the UK, a survey last year by the Chartered Institute of Purchasing and Supply (CIPS) of British businesses revealed nearly 75 per cent of supply chain professionals admitted they had “zero visibility” of the first stages of their supply chain. Eleven per cent acknowledged it was “likely” that slave labour was used at some point in the process.
Says Livsey: “Wider society does not quite understand human trafficking is a serious issue. You could be a hotel, restaurant, food manufacturer or a construction site – it is quite possible you’ll have a risk in your supply chain on trafficked labour. Businesses need to think forward about what these risks might be.
Read more at The Big Interview: Ian Livsey, CEO, Institute of Risk Management
Supply Chain Institute
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