Global risk index climbs higher
A barometer of risk across 132 countries moved higher in the final three months of 2014 having hit an 18-month low earlier in the year. The report is compiled by the Chartered Institute of Procurement and Supply and looks at factors such as economic outlook and civil unrest. Currently some developed economies weigh heavily on the risk index with Western and Central Europe and Asia Pacific causing concern. North America poses little risk as a percentage of the global picture. Despite the woes of the oil industry Canada’s economic outlook is positive says the report while the biggest risk in the US is the normalising of interest rates.
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Privacy commissioner publishes report on cyber security
In a timely report following the recent cyber attack on Anthem the privacy commissioner in Canada had published a report in which it looks at the challenges that face cyber security and privacy, with many shared themes. The report highlights that “cyber security and privacy are interconnected” with one of the biggest risks from a cyber attack being the loss of customers’ personal data and the damage that can do to reputation. However is also makes the point that often measures to bolster cyber security can also compromise privacy as effective monitoring of cyber threats can mean the capture and analysis of personal data. It talks of the ‘professionalization’ of attacks, which are increasingly state-sponsored. Another important area is mobile cyber risk. With more of us using smartphones and many businesses allowing the use of personal devices for work there is a risk to both the personal and commercial data that is stored on smartphones and tablets. There is also discussion of one of the ‘hoot tools’ for insurers, big data, and how it can pose both large threat and large opportunity.
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Supply chains at risk from climate change
Supply chains in North America are more exposed to climate change risk than those in Europe and Japan. A new report by CDP (the Carbon Disclosure Project) says that suppliers in the US and Canada need to do more to mitigate the risks from climate change, although it noted that some US-based companies are taking the most positive action to address the issues. In the wider business community though there is “An imbalance between high exposure to climate risk and the steps that suppliers have taken in response leaves room for improvement.” The report does show a more robust approach to the issues of climate change risks in the supply chain with more companies setting targets to reduce carbon emissions; nearly half (48 per cent) of suppliers set targets last year, compared to 44 per cent in 2013 and 39 per cent in 2012. As suppliers become more advanced at carbon management, the number of companies realizing monetary savings from their actions to reduce emissions mirrors the rising trajectory, jumping from 29 per cent in 2012 to 33 per cent in 2014.
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