smallbusiness.co.uk: Helping your business think big

With the double threat of swine flu and insolvency more businesses are taking steps to manage their supply chain risks, says a survey by business consultancy Aon.

Some 75 per cent of respondents say they view supplier financial failure as a key risk area, up from  31 per cent last year. Some 42 per cent recognise the importance of supply chain risk management, up from 15 per cent.

Grant Foster, head of enterprise risk management at Aon, says: ‘Such uncertainty in the global economy and a greater demand for corporate accountability has meant companies are taking a far more proactive approach to managing their supply chain.’

Of the l00 firms surveyed, more than half (53 per cent) say they have introduced regular communication and audit policies with suppliers, with the number of companies investigating their suppliers’ suppliers having increased by 20 per cent.

According to research by Close Invoice Finance, smaller companies tend to be more effective at managing their financial risk than large companies.