4. Managing risk and business continuity Business partners and supply chain business partners agree Chart 15 Which of the following do you see as the biggest risks to the that mitigating risk is one of the biggest contributions that Which of the following do you see as the biggest risks to the supply chain? (percentage) CFOs can make to the supply chain . But in a complex global supply supply chain? Select up to three. chain, identifying key risks is a significant challenge. Most large Currency risk 41 companies rely not only on primary suppliers, but on secondary 20 and tertiary layers as well . With operations happening at several Labor disputes 37 layers removed from a company’s direct control, it can be 33 challenging to understand exposures and ensure that these risks Overinvestment in capacity 33 31 are mitigated . Fraud and corruption 30 CFOs and heads of supply chain have different perspectives on 18 supply chain risks . While both are concerned about labor risks, Potential for unexpected disruption 30 business partner CFOs’ other preoccupations are about currency from natural events 38 risk and overinvestment in capacity . Business partner heads of Unethical practices by supply 26 supply chain, however, are most concerned about lack of visibility chain partners 11 into outsourcing relationships and the potential for unexpected Lack of visibility into outsourcing 24 relationships, particularly among 51 disruption from natural events (see Chart 15). secondary and tertiary suppliers Concentration of manufacturing 22 activity in specific geographical areas 27 Abrupt regulatory change 20 13 Underinvestment in capacity 15 22 % 0 10 20 30 40 50 60 Business partnering finance Business partnering supply chain 30 Partnering for performance Part 1: the CFO and the supply chain