Risk Management

WannaCry Malware Attack: An Eye-Opener for Businesses

The outbreak of the “WannaCry” malware attack on May 12, 2017 was an eye-opener for governments, public sector institutions, businesses and individuals around the globe. The scale, reach, pace of spread and impact of the attack was unlike any other cyber-attack before. This may only be the beginning and possibly a wakeup call for organizations and netizens across the globe.

Rising Concerns Around Lack of International Consensus on Climate Change

Rapid changes in weather patterns could lead to severe drought situations and water crises, which in turn could spark geopolitical and societal risks like mass involuntary migration and local or regional unrest. Ineffective management of the earth’s shared natural resources such as the atmosphere, high oceans etc. could have far-reaching local and global consequences.

Managing Currency Risk in Procurement

The adage that the only constant is change is especially true in regards to currencies. It is important for procurement professionals to periodically revisit their contracts and ensure they are not caught off guard.

Slave Labor Claims Restrict Sweetener Imports into U.S.

The United States, earlier this year, introduced a bill prohibiting imported goods produced by forced labor—slavery. Under the new law, Stevia, produced by Chinese company PureCircle, has been banned because the company is alleged to have sourced the Stevia rebaudiana plant (from which the sweetener is extracted) from a company accused of using forced labor.

Toyota’s Lessons in Disaster Management: ‘How Quickly Can We Recover?’

Toyota relies on its Just-in-Time inventory system to reduce storage costs and maintain quality control of its parts. It’s an efficient system that, in normal times, works well. But we are not in normal times. Sadly, the most recent series of earthquakes in Japan again has highlighted its drawbacks. Back-to-back quakes of magnitudes 6.5 and 7.3 (among others) shook the southern Japanese island of Kyushu, one of the country’s major automotive manufacturing areas. Dozens of people died and thousands of buildings were destroyed.

Managing Supplier Risk

Globally integrated and complex supply chains lead to barriers in identifying risk concentration. Dependence on a select supplier, in case of a single-sourcing strategy has increased the supply risks. Weak links in a supply chain can result in significant costs.

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