November Professional Development Meeting
Risk Management: What Could Impact Your Company's Reputation?
November 9, 2010
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What You Missed

Risk Management: What Could Impact Your Company's Reputation?

The night started with just a little “Hiccup” when the projector for the presentation refused to work. It was a good thing that our speaker Cathy Herr was able to reach back to her beginnings with Eli Lilly as a programmer and get it to behave. Afterwards everything proceeded smoothly. After a survey of the industries represented by the attendees, Cathy presented some amazing facts related to risk management. From the many risks that affect businesses, financial, technology, counterfeits, public trust, to name a few….counterfeits account for 5-7% of world trade or $650 billion per year. Disruption in the supply chain is also a major concern for many company executives. A disruption can cost companies huge amounts of money as well as reduced market share and unhappy customers and shareholders. Somewhat recently colleges have started offering more programs that focus on supply chain risks.

Throughout the presentation Cathy discussed many real life examples that brought to light the need for risk management in businesses. Many are publicly known from reports about in newspapers or TV while several other examples came from actual events that Eli Lilly experienced. Some of the examples that are publicly know included Toyota, Wendy’s, BP, Nike and Mattel Toys.

With the world “shrinking” and as more companies outsource products to 3rd parties with the goal to save money they are also exposing themselves to additional risks that are not always evident when dealing with local suppliers. You need to know your suppliers whether they are down the street, across the state or around the world. If you don’t it could cost you dearly and you might have to wake up one morning and explain to your company executives why your supply chain is broke.