| Once you start using a common sense approach of | | | | 2. Which leads to the related concept of asking if |
| integrating enterprise risk management (ERM) | | | | they are taking those actions? |
| throughout your business, you will be pleased to find | | | | 3. What are the best 3 long term opportunities for |
| areas where you can either reduce costs from | | | | my suppliers? |
| reducing waste or inefficiency or increasing the | | | | 4. How can they pursue those long term |
| likelihood that future revenues will occur from | | | | opportunities and are they pursuing them? |
| customers or products. | | | | 5. What are the top 3 longer-term risk areas for my |
| One example of this can be through applying ERM or | | | | suppliers? |
| the related version of operations risk management | | | | 6. What are the top 3 priority infrastructure issues |
| (ORM) into your supply chain process. Let me explain | | | | for my supply chain? |
| in more detail. Supply chains have always been | | | | 7. How will renewable energy impact my suppliers? |
| important but in this age of outsourcing, they are | | | | Experts have found that as they evaluate the risks |
| even more important. Some leaders even consider | | | | of their suppliers, they may also come across |
| them to be strategic assets even to point of | | | | opportunities for themselves. By understanding |
| advocating that an enterprise is only as healthy as its | | | | vendor needs and current and longer term pressures, |
| supply chain. | | | | both parties may find improved options. Hence taking |
| Consider the supply chain emphasis on this 7 question | | | | risks out of your supply chain to better manage your |
| approach used to reduce risk in your business. This | | | | business, improve your product and even improve |
| process flips a conventional view of integrating risk | | | | your bottom line. |
| management in your business to looking at this from | | | | An example of where your version of enterprise risk |
| the perspective of your vendors. | | | | management (ERM), operations risk management |
| What are the top 3 concerns my suppliers have? | | | | (ORM) or contingency planning cost effectively |
| | | | integrates with traditional vendor relationship or |
| 1. What actions can they take to minimize them? | | | | vendor rankings process. |