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Supplier risk management is defined as the process of predicting and preparing for the probability of variables which may adversely or favorably affect the supply chain. Supplier risk management is not a new concept; however, the type of risk that can affect the supply chain and the way in which these risks are managed and mitigated has evolved significantly. The need for proactive and predictive management strategies is ever present in business today.

Aravo, the leading provider of SaaS Supplier Information Management (SIM) software and services, today announced the results of a new supplier risk poll exploring the opinions and concerns of Fortune 1000 executives. While global corporations are focusing on creating collaborative partnerships with suppliers to make supply chains more efficient, the poll indicates that their top concerns include ongoing supplier financial viability, ensuring regulatory compliance, and managing suppliers in emerging markets.

A significant number of those polled (71.4%) expressed that their biggest concern continues to be risk of supplier financial viability. However, despite these concerns, more than half of the financial, procurement and risk executives polled have less than 20% of their supplier base under active risk management.

Supply chain executives can better manage risk with a new service from Dow Jones & Company that provides ongoing, active monitoring of a wide range of potential threats. Dow Jones Supplier & Risk Monitor offers proactive monitoring of all types of risk including supplier failure, supply continuity, political exposure, reputation management, product safety, plant and port closures, staffing disruptions and more.

Dow Jones Supplier & Risk Monitor can be fully customized with widgets installed directly into a customer's workflow or hosted in a dashboard format, ensuring that the most current supply chain intelligence is always accessible. In addition, users can set up alerts, so they can be informed about key news and information by email or mobile device.

The concept of supplier risk management is still relatively new, as business strategies go. But in the era of global sourcing and volatile markets, supplier risk management is rapidly becoming every bit as necessary to global supply chains as in-house corporate risk management.

Business attitudes across the globe — jarred by the European sovereign debt crisis, sagging consumer confidence and continuing market fluctuations — are vacillating between confidence and caution, and volatility is likely to remain a permanent feature of the global business environment. While the financial crisis revealed key vulnerabilities of an interconnected global economy, it has also provided a needed catalyst in helping organizations create more dynamic, resilient and responsive supply chains to. A clear majority of leading industrial companies still see cost as their main priority while managing supply chains, despite emerging evidence that excessive focus on cost has damaged relationships. A majority of the leading industrial manufacturing companies have created supply chain models that appropriately balance agility, sensitivity to risk, quality and cost. They plan to enter into more long-term contracts with fewer suppliers — with cost being the key driver for much of the collaboration. Read our report to find out how leading companies are adapting their business models and employing new supply chain tactics to manage risk while capitalizing on opportunities.