Supply Risk Is Rising — But Few Are Paying Attention

In the next week or so, I'll be posting a couple of blogs on what Marsh has been up to of late in the Supply Risk management area. Perhaps most noteworthy, they acquired ChainLink research to build out a sizable and growing supply risk practice. But until that post, a great place to see that type of research that their producing comes courtesy of Supply Chain Management Review which recently excerpted some of the findings from a recent Marsh research brief on the subject. Based on a survey of 110 companies in North America -- largest than AMR's last sample size which examined a similar area -- Marsh found that "the results showed an awareness of danger and risk, but very little is being done about it. According to the report, 73 percent of the respondents said supply chain risk has gone up since 2005, and 71 percent of the study's respondents said the potential financial impact of supply chain disruption has also grown."

Perhaps more disturbing is the fact that "the report also indicated 65 percent of respondents characterized their risk management practices as having a low or unknown effectiveness, or had no risk management program at all." Stay tuned for more insights into Marsh's research around supply risk as well as how they're building out what appears to be a highly unique research/consulting/analyst/insurance hybrid offering business model to address supply risk on multiple levels. Personally, I think the firm has got a chance to become the go-to source for information and services in the area, especially as Protiviti and others make less hay about a subject that should be on the top of everyone's agenda in the procurement and supply chain world.

- Jason Busch

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