Effective risk management enables risks to be identified at an early stage and countered with suitable alternative plans. However, it is hardly possible to avoid risks completely, as they are inextricably linked to entrepreneurial activity. Instead, it is a matter of proactively identifying risks and reacting quickly.
In view of the current crises, companies and their procurement departments have to face a wide variety of challenges - reconciling sometimes conflicting objectives is a balancing act that can only succeed if the management team is actively involved, as we explain in the cover story.
An in-depth Risk Management study, conducted by leading strategic procurement and supply chain management consultancy, INVERTO, part of the BCG network, has found several insights into the industry.
Nine out of ten respondents were affected by delivery failures last year. Nevertheless, the number of those who invested in strategic risk management and corresponding digital solutions stagnated.
Find out the impact of the pandemic on portfolio companies in our newest White Paper.
Predicting risks is possible if companies start early enough and take measures proactively.
Diversification leads to increased stability and reduces dependence on individual suppliers or regions.
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