Survey, Companies, Globalization, Outsourcing, Risk
Global companies consider outsourcing as low-risk
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Operating in a global environment has a number of high risk challenges. FM Global recently commissioned a survey to learn how financial executives at the world's leading companies perceive and address their risks in an environment of heightened expectations. The study surveyed over 600 financial executives around the world who work for companies with at least $500 million in annual revenue.
Despite recent news of security breaches and political instability at offshore locations, risks associated with globalization and outsourcing were considered low priorities or concerns.
While globalization is introducing new operational challenges as many leading companies reengineer their operations and eliminate redundancies from their business processes, 42 percent of financial executives in North America say the risks associated with globalization are a "low" priority or concern.
Additionally, more than one-half (54 percent) of North America-based respondents say the risks associated with outsourcing are a "low" priority or concern.
While financial executives based overseas share similar views as their North America-based peers regarding globalization-related risks they place more of a priority/concern on outsourcing-related risks.
According to the survey, supply chain risks pose the most significant threat to many North America-based companies' top revenue driver; and generally, risk management is a moderate to high corporate priority for 96 percent of North America-based companies.
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