Risk management has gained the footprint on board meetings

Matti Manner is the CEO of Prohoc Ltd. He has been Chairman of the Board at Jakamo from 2014. The former SCM Executive at ABB loves sports and projects, and to help people succeed with their life projects. We had a privilege to interview him about risk management in the manufacturing context.

“Risk management has increased its importance during the latest years, for sure. Nowadays many companies really have a comprehensive way of looking at business risks in general and this is partly because of modern management systems starts from this perspective.”

“Obviously nowadays when we’re globally networked, most of the manufacturing companies are having multiple tiers of suppliers and the suppliers are globally spread. The customers are global players as well and require really solid performance from its suppliers. So, the risk in terms of ability to deliver, the risk of maintaining good corporate citizenship, which is highly important nowadays, due to sustainability and compliance topics.”

“I see that risk management has gained a lot of footprint on the board meetings. It should be in every board meeting agenda to review the top risks and how do we mitigate them or is there something that we can transfer to another party who has more ability to control the risk.”

“There definitely are digital solutions available for risk management and lots of development is ongoing. I believe that risks should always be controlled by the party who has the best ability to control the risk. In order to do that you need to have really good visibility to your entire business – from customer side to the suppliers and sub-suppliers. In order to have visibility to the whole chain of actions, you need to have really sophisticated systems to follow all the ongoing activities and to make sure you have a solid audit trail how you select the suppliers, how you collaborate with them, what are the activities you have done there. You have to make sure that your back is secured. The modern software solutions can able this, so you are not holding the information in a silo anymore.”

“I would say that people are always the biggest risk. You can design a process, or design the way of working, but when you look at ICT related data security risk, it’s always us that are the main drivers for the risks. It’s important to educate people and I think this has to come from top management. We need software solutions that can simultaneously improve the individual working life and at the same time reduce the dependency on individual persons. I think the collaboration tools and platforms will most probably help us in that path.”

Read Matti’s earlier blog posts:

Supply Chain Collaboration – Another Buzzword or Something Else?
Cutting Costs or Driving Value Creation