Risk Management & Governance
The intricate balancing act of being globally competitive and a stellar corporate citizen is getting harder and more challenging. How companies source inputs and manage suppliers, plays an increasingly important role in protecting their margins, brand and growth into the future.
How companies manage and mitigate their potential risk as their dependence on global supply grows, adds another and more significant layer of complexity.
Previously confined to the ‘auditing’ space, there is now a clear understanding that without a disciplined and objective approach to risk management and governance, and without commitment from Stakeholders, any procurement activity is left exposed both in a commercial and legal sense.
There is an immediate need for risk assessment, compliance, clarity of roles and accountability, audit and traceability, social responsibility and economic effectiveness to be embedded as core measures for effective procurement. To achieve this, we need attention to:
- Identifying and assessing the level of risk
- Development of workable policies and procedures
- Ensuring compliance at all levels through tools and templates, and
- A solid business continuity plan