Jul. 18, 2013

Be proactive about supply risk management
Spend Matters
Procurement is often in a difficult position when the company's business is exposed to significant supply risks. A strong focus on savings could mean poor service levels for internal customers and stringent service levels to the internal customers could result in significantly inflated costs. Is there a magic wand that can help procurement teams achieve these seemingly conflicting goals? More

More on getting risk management right
KPMG's June report put forth eight "imperatives" for corporate risk management. Blogging for the Institute of Internal Auditors, Norman Marks critiques KPMG's conclusions with an eye toward separating wishful thinking from practical realities. One key point where Marks agrees with KPMG is on the need to clear communication of risk expectations from corporate leadership. On the other hand, Marks disputes the report's implication that risk and control functions should be tightly interconnected; his point of view is that the internal audit function supplies are sufficient.More

Investors capitalize on secondary cat bond price gains in 2013
One of the interesting features of the catastrophe bond market in 2013 was the trend earlier this year that saw secondary cat bond market prices rise through February, March and April. This was triggered at first by lower than expected first-quarter cat bond issuance but spreads continued to tighten right up to May, helping catastrophe bond investors achieve attractive returns.More

Business continuity management is good governance
Good corporate governance is now mandated by law through the Companies Act. Compliance with the King Code of Governance (King III) has also become a requirement for listing on the Johannesburg Stock Exchange. Corporate leaders now recognize it as a prerequisite for good management and long-term sustainability of their companies. Less widely recognized is the link between good governance and business continuity management.More

Report: Cyberattacks on stock exchanges put markets at risk
Reuters via Business Insider
Around half of the world's securities exchanges were the target of cyberattacks last year, according to a paper based on a survey of 46 exchanges recently released. The prevalence of attacks along with the interconnected nature of the markets creates the potential for widespread impact, said the joint staff working paper by the International Organization of Securities Commissions' research department and the World Federation of Exchanges Office.More

5 areas to test when running a mock disaster preparedness drill
Business 2 Community
Every business, large or small, needs a disaster preparedness plan, but that's only the first step. As with a fire drill, the only way to know you're ready is to test it. In general, your company should test its plan at least once a year or any time there has been a big change in your business, such as major operations or infrastructure updates.More

Clothing makers can step up to ensure worker safety
The recent collapse of the Rana Plaza, a sweater factory fire in Dhaka and the 2012 fire in the Tazreen garment factory have left more than 1,500 garment workers dead and at least 1,000 seriously injured. While these incidents are unrelated, they reflect the abysmal human rights record of global companies that overlook working conditions in Bangladesh.More

6 elements staffing firm contracts must include
Business Management Daily
When negotiating contracts with employee outsourcing firms, many organizations make background checks an afterthought and leave the specifics up to the agency. That's a big mistake.More

Is travel bad for your health?
The Washington Times
According to a lengthy study that looked at frequent travelers and measured their health against time spent on the road, travel may be hazardous to your health.More

Big fish ... bigger pond
For an insurance segment highly coveted by producers and major carriers alike, the high net worth insurance business can often lack one major asset: an abundance of clients. Many wealthy Americans may be unaware that a specialty insurance market geared toward their unique exposures exists, executives say.More

Risk management: Time to get real
It wasn't long ago that it was acceptable for capital markets firms to manage their risk on an overnight basis, computing their various measures through lengthy batch processes while the markets slept. But that all changed with the 2008 credit crisis as market participants discovered that those organizations considered for decades to be the sentinels of the industry, were among the least trustworthy.More

FDA's preventive controls: Moving to HACCP and beyond
Food Safety News
The U.S. Department of Agriculture has required meat and poultry facilities to operate under risk-prevention Hazard Analysis and Critical Control Points systems since the late 1990s. But other than the seafood and juice industries, no food makers regulated by the U.S. Food and Drug Administration have been asked to do the same.More

Risky business: Cutting workers' hours to save on health costs
The Wall Street Journal
The Obama administration's announcement that it will delay implementation of a key provision of the Affordable Care Act gives firms more time to make key decisions about how they will comply. The choice for organizations with many hourly workers has generally come down to a few options, among them: extend benefits to more employees and swallow the cost; fail to comply and instead pay a penalty for every uninsured worker; or circumvent the requirements by cutting workers' hours to below 30 per week. But companies that choose that last route do so at their peril. Cutting hours to avoid paying benefits may put firms on the wrong side of the law, say legal experts.More

Keeping internal auditors up to the challenge
If the scope of your job were to widen dramatically tomorrow, would you be prepared? A recent study by Forbes Insights, in association with EY, "Matching Internal Audit Talent to Organizational Needs," explores the ever-evolving role of Internal Audit, the group tasked with providing internal expertise in evaluating and improving effectiveness of risk management and corporate governance processes. It sounds like a pretty hefty expectation already, but it's one that's likely only going to grow.More