We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Nearly 70% of businesses are ramping up their investment in supplier risk detection

Nearly 70% of businesses are ramping up their investment in supplier risk detection

Moody’s Analytics says benefits include protection of reputations, operational resilience, avoidance of fines, and recovery from disruption.

moodys Screen Shot 2023-04-19 at 1.27.10 PM.png
April 19, 2023
Supply Chain Quarterly Staff
No Comments

Companies say a key driver of rising investment levels in supplier risk detection is the levels of threat to their reputations, according to a study from the financial intelligence firm Moody’s Analytics.

Businesses pointed to a range of factors driving that assessment, including: a lack of data, difficulty evaluating every organization in a supplier network, and the responsibility for supply chain visibility being spread across departments. 

Despite the rising threat, 69% of businesses say they do not have the necessary visibility over their supply chains to uncover risk in their organizational networks to avoid reputational harm. And at the same time, 74% rated their third-party risk management sophistication as either poor or mediocre. So 70% of businesses are growing their investment in third-party risk management, Moody’s said in the report, “The rising tide of third-party risk management -- Surfacing risks to safeguard reputations.”

“The past couple of years have brought supply chain risk to the fore. Organizations that can account for the environmental impact of their suppliers and demonstrate that they work with fair and ethical organizations can better protect their reputations and are more appealing to consumers. It’s clear that visibility of supply chain risks can provide huge competitive advantages,” Keith Berry, general manager, Know Your Customer Solutions at Moody’s Analytics, said in a release.

The report identified four advantages of improved third-party risk management: avoidance of reputational damage, improved operational resilience, avoidance of fines, and faster time to supply chain recovery following disruption.

And identifying risks associated with suppliers buried in the supply chain is particularly crucial to consumer-facing businesses and regulated organizations which are particularly sensitive to reputational risk, Moody’s said. Those pressures have recently risen even higher due to new regulation such as the German Supply Chain Due Diligence Act and the EU’s upcoming Corporate Sustainability Reporting Directive, the report said.

 

 

Strategy
KEYWORDS Moody's Analytics
    • Related Articles

      Gartner: Nearly three quarters of supply chain leaders have not assessed their climate risk

      Chubb: businesses should study their multi-tier supply chains to control risk

      IFS study: 70 percent of businesses increase or maintain digital transformation spend amid pandemic

    Recent Articles by Supply Chain Quarterly Staff

    EDGE Conference sets foundation for the future

    FedEx harnesses package scan data for new emissions tracking tool

    Shipping data exchange platform GSBN adds ONE as member

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing