Ten tips for managing risk in uncertain times
This is personal; especially in procurement and supply chain, our career and our lifestyle depend on how we manage risk. Procurement and supply chain executives are seeing volatility in 2016 with unstable markets, mergers and acquisitions, increased regulations and slow growth in the global economy. All bets are off for 2017, when a new administration will be in place whose policies are unclear at this time. There is little doubt that procurement and supply chain leaders will be forced to build strategies, plans and processes in uncertain times. To survive, we must welcome and embrace uncertainty.
No one can predict what the level of uncertainty will be, but with digital disruption, artificial intelligence, unstable markets and supply-chain integration, it is only natural that procurement and supply chain leaders build flexible strategies, be prepared to take risks and calculate the impact of risk-based decisions. Politicians are proposing many activities that could have a drastic effect on sourcing and supply chain operations. The thought of UK pulling out of the EU, the US pulling out of its trade deals, pressure on offshore headquarters, increasing wages and support for reshoring will all impact procurement and supply chain operations.
Taking the right risks and making early decisions will make or break a career. Here are 10 tips for managing personal risk:
- Continuous review of the strategy and the horizon will keep you and your team aligned to necessary changes
- When change is evident, build a clear business case and act decisively
- Be proactive and engage management early
- Quickly build a fact-based analysis and use influence to align top management to the strategy
- Assure that you have an effective change process
- Put your top people on executing the necessary changes
- Prepare for cynics and challenges to the plan
- Build communication and preparation for a crisis mode
- Lead with confidence and bring your team along
- Keep on top of the business news and use the analysts on your team to brief you daily of changes that are occurring
No one can predict the future, but the signs of significant change are in the wind. In preparing for battle General Dwight Eisenhower said “In preparing for the battle, I’ve always found that plans are useless, but planning is indispensable.”
What is your proactive strategy? How much risk will you accept?