Get proactive on risk

DIGITAL ASSURANCE provides organisations with the opportunity to view risk through a new lens, ensuring proactivity, as opposed to reactivity. In a business context, the use of data and analytics, through tools such as EiQ, can offer real-time, from-the-ground supply chain data and identify where strategy needs to be adjusted. 

Similarly, artificial intelligence technology can be used to predict risk, meaning organisations are agile and able to respond to threats at a faster rate. Another example includes hardware such as drones which can be used to remotely inspect areas tough to access. Automation can also be applied to improve internal processes, increasing efficiency and profitability. As an element of auditing and digital assurance, these technologies can highlight areas where improvements are needed, such as more training or alternative testing methods, therefore giving businesses the information and opportunity to make beneficial changes.

What is the need for digital assurance?

Supply chains are evolving in response to unprecedented levels of change and disruption on a societal and industrial level. This means businesses have become progressively more vulnerable to unpredictability from suppliers. Some global supply chains are as extensive as seven or eight layers, making risk harder to manage and monitor, especially when considering the unique regulations which apply to different components and geographies. Businesses therefore need to engage their supply chain at a much deeper level, despite the added complexity of the task.

A new approach to managing risk requires systematic change, beginning at the top layer of the supply chain. Digital assurance allows an organisation to combine technology and human expertise to mitigate their risks before they become problematic. This should be a priority for businesses who are committed to staying ahead of the curve, and who want to prioritise long term safety, sustainability and profitability. 

Data-driven platforms like EiQ allow companies to dig deeper and take a more surgical and granular view of risk. Businesses need to understand that the future of risk management is very different to the past, and it’s time to think differently, based on private data and not just public perceptions of brands in your supply chain.

If businesses fail to embrace the benefits of digital assurance, they could leave themselves vulnerable to a multitude of risks. With the right support, supply chain issues can be identified early on and mitigated before issues become problems. This is particularly important in areas of product safety, environmental and social impact where fraud can be detrimental to a brand’s reputation, despite them not directly controlling the entire chain. 

What needs to happen now?

The priority is to build a culture of risk identification across every layer of the organisation, as well as the supply chain, combined with a commitment to continuous improvement. Businesses must adjust how their supply chain is managed, the goal ultimately being a responsive and agile supply network populated with trustworthy suppliers that can be switched on or off at a moment’s notice. 

Not only is this culture beneficial to stakeholders of the modern day, but it sets the framework for future organisational management, with sustainability and safety at the forefront of conscious decision making. 

Proactive identification of risks, threats and potential improvements through specialist assurance technology, is increasingly crucial for organisations to maximise their chances of operating an environmentally, socially, and legally safe supply chain.

Paul Butcher, chief executive officer, LRQA

For more information, visit www.lrqa.com