Business leaders are not doing enough to prepare for the risks that arise from our increasingly inter-connected world, such as government debt crises, extreme weather events and social instability, claims the Institute of Directors in a new report, Responding to Global Risks: A practical guide for business leaders.
This is a concern highlighted in the 2013 BCI Supply Chain Resilience Report which identified that, as supply chains become ever more complex, organizations find it difficult to manage them effectively. In the survey that led to the report, 75% of respondents admitted to not having full visibility of their supply chain disruption levels and 42% had experienced a disruption below their immediate supplier the previous year.
Charles Beresford-Davies, Managing Director and UK Risk Management Practice Leader at Marsh, said: “No company operates in isolation. Every business, no matter how large or small, is part of a complex global network of suppliers, outsourcers and customers, all of which are subject to resiliency risk.”