Trying to assess the risks and vulnerabilities your business has in the supply chain can be very difficult.
Aon Risk Solutions revealed that cultural factors have been a primary concern for businesses that are trying to lay out a global risk management approach in up-and-coming markets, according to a press release.
"As many businesses sharpen their focus on remaining competitive and sustainable in a world of uncertainty, this finding reminds us of the importance of starting with a solid understanding of both the environment in which an organization operates and the complexity of risks it faces," Theresa Bourdon, group managing director at Aon Global Risk Consulting – Americas, said in a statement.
"As we expected, we are beginning to see interesting trends in the overall risk maturity of organizations based in different parts of the world," she added.
Bourdon explained that problems that arise from cultural differences are uncommon in markets that have been established for a long time and have made risk management a priority. She said that without having to worry about culture issues or risks, these companies can focus on other problems brought up by things like government regulatory standards, economic climate and logistics management.
Risk management in the supply chain is easier said than done – especially when working with suppliers in foreign countries. Of course, the whole system would run more smoothly if every business made label compliance a priority. Unfortunately, that's not always the case.
The best way to assess your own company's risk management is to analyze the way you check up on the label tracking and traceability of the products your company uses. Buying goods from trusted distributors and suppliers may not completely eliminate your chances of falling victim to an elaborate counterfeit labeling scam, but until there's a bigger push to prevent bootleg items from getting into supply chains, that's the best you can do.