Since the banking crisis in 2008, the world has woken up to the consequences of unregulated risk. Managing risk is now a major issue for corporate finance and governance and real progress has been made in understanding and articulating financial risk. However, there seems to be little evidence that the risks associated with the globalisation of manufacturing are being systematically managed.
One of the main causes for concern is that companies seem to manage risk through a variety of methods, none of which has been designed specifically for the task. So writes Dr Mukesh Kumar from the Centre for International Manufacturing, at the University of Cambridge, in a discussion on ‘the lost art of risk management‘.
As he says, it is often unclear who within the organisation has responsibility for particular kinds of risk. And even when people or teams do take ownership, they face the challenge common to all highly complex multinational organisations – the difficulty of sharing knowledge across functions which may be scattered across sites.
See more at: http://www.cam.ac.uk/research/discussion/the-lost-art-of-risk-management
Pictured: In August 2011, did anyone in the UK see what was coming next?! A boarded-up shop in Wolverhampton city centre the morning after some of the England-wide riots and looting.
