Managing supply chain risk to operations and reputation
The Institute of Risk Management is asking businesses to think about how they respond to scandals involving their supply chain. In their report ‘Extended Enterprise: managing risk in complex 21st century organisations’ the IRM says that businesses are not entirely in control of every aspect of their operations…or reputation. This fact is highlighted by recent cyber attacks on banks and retailers; the lapses of food safety in China which has affected McDonalds and KFC; and the European horsemeat scandal of a few years ago. The report highlights some of the key areas in which a business could be compromised by third party suppliers and why a wider risk management policy should be implemented. The IRM suggests that instead of focusing entirely on ‘tick box’ compliance businesses should build relationships with their supply chain to ensure that they have similar risk management objectives and ethical values. The ‘extended enterprise’ – the whole supply chain – should also share data and best practice.
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Australia’s life insurance sector slammed by regulator
The Australian Securities and Investments Commission has released a damning attack on the country’s life insurance industry. A report reveals that 40 per cent of the financial advisers it surveyed had failed to comply with the law on selling life policies. It says that many are more interested in commission than giving the right advice. The ASIC says the industry should consider itself ‘on notice’ to put its house in order, but has stopped short of changing regulatory policy.
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Armed forces insurer aims to be first to test drones
USAA, the financial services company that has many armed forces personnel among its clients, has requested permission to test unmanned aircraft or ‘drones’ in a bid to speed up the settlement of claims. The use of drones is prohibited for commercial use but the Federal Aviation Authority is able to grant exemptions for research purposes. USAA want to use the aircraft to assist in assessments of natural disasters; specifically sending the unmanned craft into locations too dangerous for assessors.
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