Posts Tagged ‘risk’

Vendor risk is becoming a critical issue

Sourcing and vendor management (SVM) clients are telling Forrester Research that vendor risk is becoming a critical issue.

Most firms have intense due diligence processes when hiring providers, but those processes have two flaws — they are one-time activities and they focus almost exclusively on deal risk rather than the vendor’s impact on corporate risk.

Now the business’ focus on growth and emerging technologies is introducing even more vendors into the mix. This stretches already resource-limited teams by adding to the volume of risk reviews but also changing the answers to key risk questions.

Most mid-sized businesses ignore the risks of technology disasters

Symantec (producers of Norton antivirus software) has produced compelling evidence that small and mid-sized businesses are seldom well-prepared to deal with technology disasters. Their 2009 SMB Disaster Preparedness Survey (based on interviews with more than 1650 respondents from 28 countries in North America, Europe, Middle East and Africa, Asia Pacific and Latin America) shows a large discrepancy between how SMBs perceive their disaster readiness and their actual level of preparedness.

The data also suggests SMB downtime costs their customers tens of thousands of euros each year. As a result, the findings show that SMBs can – and often do – lose business as a direct result of being unprepared for disasters.

Managing risk

There can be a big need for corporate risk management when economies are struggling and businesses are failing. The reach of any one company can expand really far in some cases and if a certain aspect of a business fails or an entire business fails there can be drastic effects on other things. Companies that offer risk management services are designed to help figure out what risks may be involved with a particular business as well as ways to avert or change the direction to help avoid disasters. Having an understanding of what the risks are for a certain type of business can help mold the way that business operates.