Turbulence appears to be the new normal in today’s global risk landscape. Political turmoil, changing regulations, disruptive weather events, financial instability and a variety of other factors can disrupt supply chains or involve companies in legal actions that result in devastating financial and reputational costs.
In such a dynamic environment, due diligence alone leaves companies vulnerable to emerging risk.
Is it time for your company to adopt a more proactive approach to risk management? That’s the question we asked recently when we teamed up with ProcureCon, S&P Global and CBRE for the webinar, “Risk Monitoring: Riding the Wave of Change.” Watch it now.
Risk management best practices based on real-world experiences
During the webinar, guest panellists offered their own takes on the modern risk landscape.Traci Carbotte, Supply Chain Strategic Sourcing Manager at CBRE, Robert Stahle, Corporate Director, Global Sourcing and Procurement at S&P Global and Oliver Gall, Head of Global Procurement at S&P Global weighed in on:
- Why they decided to add ongoing risk monitoring to their risk management process
- How they overcame barriers by showing the ROI of comprehensive risk management
- What benefits they’ve achieved from ongoing risk monitoring
For example, Traci Carbotte, Supply Chain Strategic Sourcing Manager at CBRE, noted that monitoring for financial instability among suppliers has enabled “good success with risk avoidance” and allows CBRE to protect its clients more effectively. And when asked, “How and why did you convert risk monitoring from a want to a need and what were the hurdles you had to overcome?” Oliver Gall, Head of Global Procurement at S&P Global noted that “It was always a must-have. The degree of investment over time has increased as regulatory demands have increased. We are seeing regulators in other areas in the world replicate what we've seen for some time in the U.S. and Europe, as we expand, it increases the need to invest in third-party risk management.”
A potential fine is just one reason to ramp up risk monitoring
Companies need to move from reactive to proactive risk management.The complex nature of global supply chains exposes companies to much greater risk. Earlier this year, for example, German medical device giant Fresenius agreed to a $231 million settlement to resolve Foreign Corrupt Practices Act violations for funnelling nearly $30 million in bribes through third-party intermediaries to public health officials and state-employed doctors in 17 countries.
It’s not just potential regulatory fines—and criminal prosecutions of bad actors—that serve as an incentive for more robust risk management.
Increasingly, investors and consumers are holding companies to much higher ethical standards. The pressure to be profitable and do good is pushing companies to walk the walk when it comes to their Corporate Social Responsibility commitments. Companies that do meet environmental, social and governance standards are proving that sustainable, ethical business practices pay measurable dividends.
- Watch the full risk monitoring webinar for more insights at your convenience.
- Take a closer look at automated risk monitoring with LexisNexis Entity Insight.
- Share this blog with your colleagues and connections to keep the conversation going.