Overall, we see that Greek organisations feel more exposed to the majority of the potential supply chain threats than those in the 2009 global sample. Financial failure of the suppliers is followed by an incident impacting supplier facilities (52.2%) and quality issues (46.7%). We assume that the high percentage (43.3%) of Greek organisations that consider war, terrorism and other geopolitical concerns to be a threat stems from the unstable political and social environment, industrial strikes in transportation, overall social unrest and the impact these have on the business environment. Also worth noting is the fact that more than double the percentage of global survey respondents (30.3%) were concerned with data security and IT incidents than the Greek respondents (14.4%). Our global clients are becoming more concerned about the security of their data, which is potentially undermined by the numerous data security breaches reported in the media and the growth of so-called ‘cybercrime’. We expect that data security will become a greater concern for Greek organisations in the future as cloud computing replaces the costlier in-house hosting of data and raises associated security considerations. Sources of risk-information With supply chains becoming more interdependent, most organisations cannot avoid an increase in risks. Effective risk management requires a proactive approach that increases organisations’ resiliency against potential threats. To inform risk analysis, organisations have to identify sources of early warnings about upcoming threats. Gathering risk-related information is not an easy task as it requires not only research and analytical skills, but also trusted sources of data. More than three-quarters (82%) of Greek organisations use their suppliers as their main source of information about supply chain risks. This answer option was not included in our previous global risk survey, but we know from separate supplier relationship management (SRM) research conducted in 2011 that leading global companies use SRM as a risk analysis tool. The CPO of a global consumer goods company, for example, noted that “ obtaining supply of materials that were in short supply globally allowed us to stay on the shelf and earn sales when competition could not. This was done through leveraging supplier relationships .”
Figure 28: WHAT IS YOUR PRINCIPAL SOURCE OF INTELLIGENCE ON INHERENT RISKS IN THE SUPPLY CHAIN?
82%
Information from suppliers
60.7%
The media (including relevant industry publications)
13.8%
32.6%
An internal organisational function
74.3%
No specific information on supply chain risks is collated and / or assessed
21.3%
10.1%
2.2%
Other
6.4%
70%
80%
0
10% 20% 30% 40% 50%
60%
90%
Greece 2011 Global 2009
Greek respondents appear to rely a lot (60.7%) on the media and publicly available information rather than other internal functions (32.6%). The opposite was true in our 2009 global survey, where just 13.8% of respondents said the media was their main source of information, compared with 74.3% that relied upon internal functions. This dependence on public sources
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