Recent natural disasters around the world have highlighted obvious areas of risk in global supply chains. But many companies are beginning to realize that less visible elements of supply chain risk can have equal or greater long term impacts on their organizations. I am referring to environmental and social issues. Hurricane Sandy and its aftermath are a great example.
A new report from PwC titled – “Risk ready: New approaches to environmental and social change” explores these dynamics. “The world is in a state of flux, and environmental and social issues are posing greater commercial risks than ever. Risk management must evolve to help their organizations track these issues and respond. In fact, some 83% of S&P 500 companies report they’re integrating one of the biggest issues— climate change—into their enterprise risk management processes. Yet the risk management community is only starting to shape notions of what it means to lead effectively in this area. Risk managers must have a structure in place to help them think broadly and proactively about such risks.”
Read the full report here: PwC