Extended-form Case Study

Knowledge empowering risk management

Published on June 2, 2015   17 min

Other Talks in the Series: Hot Topics

The topic for today is around risk management. And risk management particularly focused around third party oversight, which is oversight of suppliers that you may leverage, particularly around outsourcing. I'm Atul Vashistha, and I'm the chairman and CEO of Neo Group.
I want to give you context of where I'm coming from. Neo Group is a company that I founded in 1999 with the sole purpose of helping companies be better globalizers. For companies to better manage their whole global services supply chain, and their life cycle around strategy, sourcing, and governance. And in that journey, what we have learned is that risk plays a very big role. Especially as operations happen at scale, and happen in many different locations. Companies need to pay more attention to risk. Not just risk of their suppliers, but also risk of locations.
And in this journey we've been fortunate to serve a number of different clients across industries from banking and financial services, to retail, to others. And that has really given us a lot of experience, and more importantly, many case studies in terms of how companies manage risk, what kind of models they build, what kind of scorecards they build. And I shall be talking about that today.
So the agenda today is going to focus on first giving you a background on what's happening in third party oversight. How to operationalize risk management program, really from theory to practice. And as I walk through this, I'll make sure I use examples of clients and their programs to illustrate how companies are actually doing this.
Why monitor locations and suppliers? As I talked about it a little bit ago, companies are expanding their sourcing footprint. They are going to many more locations, often developing locations. Which is really increasing their risk. In many countries and many locations, we're finding that not just corporate boards, but also regulators are asking questions about risk, about supply risk. And so whether companies are sourcing to a partner, a supplier, or opening one of their own operations in many of these locations, the impact on operations can be drastic. Because this is no longer about outsourcing projects. They're using suppliers on an ongoing basis. We believe that good risk management programs are not just reactive but actually very proactive. Which means you try to take a look at leading indicators, you look at things before they happen. Why? Because you think about risk, and you look at indicators that may give you an advance warning or an early warning system.

Knowledge empowering risk management

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