Consider these scenarios:
? An outsourced vendor for transaction processing decides to exit the business and provides little notice or transitional support
? A data centre partner encounters a financial crisis
? An important distributor does not provide the amount of prime shelf space that had been agreed upon and instead leads with a competitor’s product
? A contracted supplier does not deliver recharge vouchers creating distribution disruptions and damaging the company’s brand reputation
? A customer organizes a boycott of the company’s services via social media
? An outsourced vendor for transaction processing decides to exit the business and provides little notice or transitional support
? A data centre partner encounters a financial crisis
? An important distributor does not provide the amount of prime shelf space that had been agreed upon and instead leads with a competitor’s product
? A contracted supplier does not deliver recharge vouchers creating distribution disruptions and damaging the company’s brand reputation
? A customer organizes a boycott of the company’s services via social media
In todays interconnected world, a business operates with an intricate chain of relationships– be it vendors, contractors, customers. These relationships, even in organizations with a strong risk focus, frequently reside at the edge of — or outside — the risk umbrella. An “out-of-sight, out-of-mind” attitude is often adopted once a company delegates a service to a vendor. After signing a contract, operating management assume all parties will perform as expected or that the relationship management and risk monitoring mechanisms are in place and functioning properly. But just like drivers who continually scan the road so…
