|
A new FM Global study
of financial executives at the world's top companies, finds supply chain risks
pose the top threat to companies' revenue. At the same time, close to half of
all respondents say risks associated with globalization and outsourcing are
only a low priority or concern for their organizations, potentially leaving
their supply chains vulnerable.
The study, "Managing Business Risk in
2006 and Beyond," contains the perspectives of more than 600 financial
executives, including CFOs and treasurers--the majority of whom work for
companies with at least US$1 billion or more in annual revenue. FM Global, a
commercial property insurer, commissioned market research firm Harris Interactive
to conduct the study.
The study found that emerging risks companies
rated highest was "governmental or regulatory," rather than
"competition."
However, the study
found that North America-based companies are roughly twice as likely as their
overseas counterparts to cite "insufficient time," "inadequate
personnel" and "insufficient budgets" as the biggest obstacles
to addressing top risks.
On average,
respondents indicate the majority of their risk management budgets are
allocated to risk control (loss prevention) rather than risk transfer (buying
insurance).
According to Ruud Bosman, executive vice
president, FM Global, the results provide informative insight regarding how
financial executives perceive and address their risks in an environment where increasing
levels of personal accountability are placed on them for the successes or
failures of their enterprises. These pressures are compounded by heightened and
near-constant pressure from investors, regulators, customers and competitors.
"With globalization and outsourcing
stretching the supply chain and introducing new and never-before anticipated
business challenges, the findings suggest many companies may want to ensure
they are doing all they can to deter a disruption of any kind," said Bosman.
"At the same time, it's encouraging to see so many companies focusing on
risk control rather than simply buying insurance to cover losses. The most
progressive financial executives do not wait for a disruption to their
businesses to demonstrate the value of investing in risk quality."
The study is available online at www.protectingvalue.com,
|
News 
