Supply Chain Risk- How “Wood” You Prevent Your Companies From Being Exposed to a Financial Loss?

Posted by The ALS Group on May 19, 2015 6:03:17 PM

A recent article in the Wall Street Journal highlighted the plight of Lumber Liquidators who has been struggling to deal with the fallout from a scandal that was caused due to the use of formaldehyde in its wood.  You may have seen this on a “60 Minutes” program in early March. If you are a retailer after reading this article and watching the 60 Minutes TV spot you must be asking the question. How well do I know my 3rd party vendors and what  process, if any, does my organization have to contain a similar event?

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Topics: Claims Management, Insurance, Lumber Liquidators, Manufacturing and Distribution, Reputational Risk, Risk management, Risk Management Blog, strategic, Strategic Risk Management, supply chain, Supply Chain Risk, The ALS Group, Total Cost of Risk (TCoR)

Doing Business Abroad: Supply Chain and Political Risk Issues – Don’t Ask…Don’t Tell?

Posted by Albert Sica on Nov 17, 2014 10:35:26 AM

As organizations increase their operations abroad, their supply chain risk also increases. A risk in doing business abroad is the reality that overseas supply chains are increasingly vulnerable to political uncertainties. According to a study reviewed by Zurich® Insurance, supply chain disruptions can cause an average 25 percent reduction in share price over two years. Can your company afford that risk? Other studies show that the stronger a company’s risk management practices, the more robust its growth. Those companies with “emerging risk practices” were less profitable, according to Zurich®. According to the American Quality and Productivity Center in a recent survey of 196 companies, 77 percent of the respondents experienced at least one supply chain glitch in the previous two years. And given companies’ tendency toward lean manufacturing, a chink in the supply chain can drastically hurt production and profits almost immediately.

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Topics: Business Abroad, Political Risk, Risk Management Blog, Supply Chain Risk

Supply Chain Reputational Risks Heightened Amid Recent Worldwide Factory Deaths

Posted by Albert Sica on Jul 17, 2013 1:19:36 PM

A recent Wall Street Journal article about a high profile factory accident, this time in Cambodia, brings new emphasis to the fallout that can arise from supply chain risk. Asics Corporation, the Japanese sport shoe manufacturer, sourced some of its shoes from a factory in Phnom Penh. In April 2013, a mezzanine floor collapse killed a young father and a young woman who, reportedly, was only 15. The incident also injured a number of other workers. Fallout from the incident was almost immediate. Asics instructed its nine suppliers in Cambodia to join Better Factories Cambodia, which keeps tabs on working conditions in the Cambodian garment industry.

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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Manufacturing and Distribution, Reputational Risk, Risk Management Blog, Strategic Risk Management, supply chain, Supply Chain Risk, TCoR, Total Cost of Risk

How Good Is Your Product Recall Insurance?

Posted by Albert Sica on Oct 2, 2012 1:56:13 PM

Product contamination and product recall risks are becoming prevalent for many industries.  In 2008 there were 351 FDA Class I recalls. Over the next 24 months, the number of Class I recalls had jumped to 1,499. The FDA defines a Class I recall as a situation in which there is a reasonable probability that use or exposure to a product will cause serious adverse health conditions or possibly death.

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Topics: Claims Management, Manufacturing and Distribution, Retail, Risk Management Blog, Strategic Risk Management, Supply Chain Risk, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)

London Olympics and Enterprise Risk Management (ERM)

Posted by The ALS Group on Aug 22, 2012 11:42:34 AM

The recent London Olympic Games drew a total of over 219.4 million viewers over the course of 14 days. What people don’t realize is the way Risk Management factored into the success that was the 2012 London Olympics. In particular, the use of Strategic Risk Management was employed by the Olympics Organizers to evaluate and implement risk mitigation policies and procedures for the Games of which the general public was not even aware. A recent article by Will Jennings in Harvard Business Review, “The Olympics as a Story of Risk Management”, looks at the Games from a Risk Management perspective. The article reveals how the International Olympic Committee (IOC) evaluated Strategic Risk Management and how some scenarios could have damaged the Olympics’ reputation and affected the international competition politically and strategically within certain markets. The fact that Strategic Risk Management played an important role in their decision making process is a positive sign that illustrates the significant role Strategic Risk Management can play in successful event planning.

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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, Risk Management Blog, Strategic Risk Management, Supply Chain Risk, The ALS Group

Supply Chain Risk Management

Posted by Albert Sica on Nov 11, 2011 1:14:54 PM

As a result of several natural disasters occurring in significant industrial areas, the crucial importance of supply chain risk management has been brought to the forefront over the past year.  Ongoing floods in Thailand (the worst they have experienced in almost seven decades) have exacted a harsh economic toll on two of Japan’s largest auto companies, Toyota and Honda, causing production disruptions that could last for up to three months.

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Topics: Manufacturing and Distribution, Property Risk, Supply Chain Risk

The ALS Group

Risk Management Blog

We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe. 

Our areas of expertise include:

  • Enterprise Risk Management (ERM)
  • Cyber Security & Cyber Liability Insurance
  • Construction Management
  • Customized Risk Management Assessments (RMAs)

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