Risk management must begin with up-to-date information collection. That’s the view of Sundar Kamak, global head of manufacturing solutions at US-based Ivalua Procurement Solutions, who says tracking risk and supplier management activities are often largely manual processes for companies, which leads not only to limited visibility but also leaves the supply chain vulnerable to disruption. “Procurement, supply chain and risk management professionals can, however, take a more proactive approach by implementing a holistic, digital risk and supplier management strategy,” he says. There are three key elements to effective risk management, he adds. “The first step is to assess one’s supply base. Of course one cannot just focus on the suppliers. All the actors along the supply chain must be taken into consideration.” The second element involves monitoring risk with up-to-date information. “It is the only way for any organisation to become resilient. This information must be collated from a variety of sources and then kept in one place where it is easily accessible and can be used to assess the risk and make informed decisions.” The third step focuses mainly on suppliers because they play an important role. “It has to be extended though from one’s suppliers to their suppliers and the possible risks that exist.” Kamak says it is an ongoing process that has to happen every day. “Risk assessment must be ongoing, with the objective of reducing vulnerability and ensuring operational continuity.” Prioritising risk and being risk prepared are must-have disciplines, he says. Preparedness is achieved through comprehensive identification of risks based on real-time information collated on an ongoing basis and by having remediation plans in place. This will ensure a business is resilient – which in turn gives a competitive advantage.” According to Kamak, in a rapidly changing environment it is not just about having the data available to assess, mitigate and manage risk, but having it available in a usable platform that can be accessed at any given time. “Any risk management programme must have a 360 degree view on all the players that impact on the business and all of the information being collated. Digitising allows one to create a single platform where all of the information can be captured, the value identified and the solutions found. ”
INSERT: “Monitoring risk with up-to-date information is the only way for any organisation to become resilient.” – Sundar Kamak
