Manufacturers Should Pay More Attention to Risk Management Scheme

It is important for manufacturers not only to focus on their technology and the business development, but also focus on their risk management scheme and practice. Instead of making the scheme a periodic presentation, it would be better to make it an ongoing and continuous practice.

A study conducted by Manufacturers Alliance for Productivity and Innovation (MAPI), and Deloitte with a title Understanding Risk Assessment Practices at Manufacturing Companies was done online in June 2014. The respondents were 68 members of MAPI with annual revenue ranging from S1 billion to $25 billion.

From the study, it is shown that the development of technology in the industry is very helpful for the run of the business. It presents opportunities, but it also presents vulnerabilities; especially with the digital threats and cyber security concern in this modern era. When a company wants to survive, not only they need to improve the usage of technology within the company’s management, they also need to improve the assessment frequency in all levels of operations. It is safe to say that risk management and assessment techniques should move in fast and advanced stage; if possible, greater than the business itself.

Improved audit practices and risk management won’t only help creating stronger supply chain, but it can also help improving employee retention and recruitment. Naturally, the whole thing won’t change the company’s structure dramatically, but it helps giving out confidence – especially if it can be adjusted with the company’s unique risks and culture. After all, different companies require different risk management planning and scheme.