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034: Assessing Your Firm’s Supply Chain Risk, Prof. Don Klock, Rutgers Business School

034: Assessing Your Firm’s Supply Chain Risk, Prof. Don Klock, Rutgers Business School

It’s been said that when it comes to risk detection, CFOs must have their antennae fully raised these days. Join us as Professor Don Klock explains why the movement to better manage and mitigate risk is well under way in organizations of all sizes.

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Globalization, Outsourcing, Offshoring

“What’s driving this is globalization. Many companies are going global. They are outsourcing materials and processes and offshoring labor in faraway places. These three things are basically increasing the risks dramatically and making supply chains more complex than ever, requiring better risk management strategies.”

Risk Management Process

•Assess and prioritize risks
•Develop contingency plans
•Monitor plan execution

Protect Shareholder Value

•Supply chain errors cause major losses (e.g. reputation, brand and financial)
•75% of the time, glitches greatly decrease stock price
•Initial reporting of problem met with an 11% reduction in value of stock

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Interview Links

  • Rutger Business School Site

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  • 034: Assessing Your Firm’s Supply Chain Risk, Prof. Don Klock, Rutgers Business School
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Filed Under: Podcast Tagged With: CFO, finance, risk management, suplly chain, supply chain

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