RISK MANAGEMENT
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• Assessing and quantifying the monetary impact of spend , revenue , or margin at risk is not always easy to do , but when done correctly is effective at holding the attention of senior management .
However , Vicky stresses that the reality is businesses can be focused on the short-term . “ This can result in companies justifying investments in supply risk management only after suffering significant losses from a major event , such as a factory fire or cyber attack . Moreover , companies often struggle to maintain consistent investment in supply risk management , allowing their preparedness measures to degrade over time .”
Echoing Vicky ’ s comments , Andrew adds : “ As such , effective risk management can help risk procurement to see the bigger picture and avoid the trap of taking short-term decisions that are not in the best long-term interests of the business .”
Technology can lend a helping hand In the last four years , the procurement technology – procuretech – marketplace has seen a rapid growth in the development of tools to support supply risk management .
“ To manage supply risk effectively , teams will need a tool to automate , control and govern the process of
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