Developing your risk radar for outsourcing

May 16, 2014
The need for “a bucket of paranoia”
We kicked off our May 14 TON (The Outsourcing Network) program with a presentation by Esbern Stig Møller from Præsidio Group focused on developing your risk radar for outsourcing and offshoring. In addition to Præsidio’s risk radar diagnostic tool, Esbern noted two critical elements for successful risk management: common sense and “a bucket of paranoia.” Esbern emphasized that risk management is a constant job of identifying and assessing threats; assessing risks and contingency planning; along with implementing, training and evaluating these efforts. Ensuring that this is in place ahead of time allows for proper response if/when the company is hit by crisis which will allow for speedier recovery and appropriate adjustment.
Risk mitigation planning–in action
Poul Bundgaard, SVP Production & Supply Chain, FOSS then gave us a detailed look at FOSS’ risk mitigation planning as it relates to their production installation in China. Poul and his group have engaged in a fair amount of auditing and contingency planning which has helped them to focus on a couple of focus areas which will be critical in the event of a crisis.
In the discussions that followed, our TON members had a chance to compare and contrast their organizations’ approaches to risk planning and mitigation. Some noted that their organization was particularly focused on one element of risk, e.g. IP, physical security, network security and so forth, at the expense of other areas worthy of attention.
If you would like to hear more about TON, contact Katie Gove at kg@trellis.dk.

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