Creating Supplier Risk Treatment Plans

Most large companies are aware that they need to understand supplier risk. But too often, they spend their time and effort assessing and tracking risk, without any clear plans for what to do if a supplier-related risk actually occurs. Firms can increase their risk tolerance — and, therefore, open more opportunities to work with emerging suppliers — by building clear treatment plans to mitigate risks before they happen. This report outlines an irony of risk management: You can actually create new risks if you don't have a clear strategy in place to address the risks you're tracking. It then outlines six different strategies you should use to address and reduce overall risk.