KPMG: 75pc of companies globally sacrifice risk management due to costs

A SURVEY carried out by a Big Four auditor, KPMG, has shown that most companies globally are open to risks due to poorly managed supply chain data, with three quarters of those surveyed not taking full advantage of their supply chain information to make better business decisions.

The study shows that while companies recognise the importance of risk management, most are not able to take any action due to costs. Companies need to recognise what are the possible risks and make plans to counter them, so as to prevent resurfacing supply chain issues, according to Singapore's Procurement Asia, which quoted The Financial Times.

The newspaper reported that procurement professionals need to step up to "take ownership of the supplier risk agenda" to manage the issue at hand. Additionally, technology could also be leveraged to better manage each company's data.

However, responsibility should not fall on procurement managers alone. Chief information officers will also need to be accountable.