One size fits none: Developing more effective risk management strategies in the food industry

May 16, 2017

In the food industry, ineffective identification and management of these risks results in millions of people becoming ill every year, sometimes with fatal results.

 

While the set of risks each industry and each business faces may be unique, common to all across the globe is the most menacing risk of all - those risks you can't see.  In the food industry, ineffective identification and management of these risks literally results in millions of people becoming ill every year, sometimes with fatal results.

At SAI Global, we believe effective management of food risk involves uncovering risk blind spots, which will be unique to each business, before they become a reality.  Not only to ensure the supply is safe for consumers everywhere but also to ensure these risks don't wreak havoc on the company's brand or bottom line.

A number of factors can give rise to risk blind spots, including attitudinal bias, lack of 'true' supply chain visibility, failure to unlock the power of data, lack of shared risk objectives, and a one-size-fits-all approach to the evaluation and measurement of supply risk.

In most cases, greater awareness of supply chain risks could have mitigated the scale of the problem, if not removed it all together. Every business has their own unique supply chain meaning a one-size-fits-all approach to risk management simply won't deliver the results required.  

In our whitepaper 'One size fits none: Developing more effective risk management strategies in the food industry' experts Kimberly Carey Coffin and Paul Oh discuss how to uncover and manage the seemingly unforeseen before it becomes a reality.

Delving back to the original source is essential to gain the depth and breadth of understanding required to ensure food produced is both safe to eat and exactly what it claims to be.  The whitepaper discusses the importance of proactive data analysis to really understand each supplier's quality and supply source, as well as to ensure bias and supply chain complexities don't blind the business to potential risks.

Today's global food supply chains are increasingly complex and reliant on a network of direct and indirect suppliers. To ensure integrity of our food, delving back to the original source to gain true understanding of the raw materials is essential, as such cursory checks of suppliers’ certification status or superficial supplier questionnaires are simply not enough to ensure the food we put on our plates is safe and authentic.

Kimberly Carey Coffin

Director – Global Accounts APAC, SAI Global

Taking a flexible and intelligent approach to risk management rather than a one-size-fits-all approach, will help ensure you have the insight needed to discover so-called 'risk blind spots' and prevent expensive recalls and even greater costs to brand reputation. 

 

Food supply chains are increasingly more complex with globalisation, making it harder to ensure the quality and safety of food supply chain. Pre-determined supply risk frameworks allow businesses to allocate finite resources, but they also have the potential to blind us to unidentified risks. Contextualised data is essential as it can drive objective insights to identify unknown risks and avoid bias, empowering organisations to make more informed risk decisions.

Paul Oh

Product Manager, Assurance Solutions, SAI Global

 

 

Across the entire food risk life cycle, SAI Global's services and platforms help businesses mitigate the unforeseen and focus on opportunities presented by uncertainty.

Our solutions include auditing and certification to ensure food safety management systems effectively deliver the high levels of control required, food training for employees, and provision of the latest standards - both government mandated regulations, voluntary and industry schemes. 

To find out how SAI Global supports the food industry, read more of our  Food Risk Resources here or find out about our risk management products and how they support the Food & Agribusiness industry here .