Changes to air cargo security will have repercussions


Cargolux Boeing 747-400F loaded or unloaded at...

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What will be the impact upon Global Supply Chain in the short and medium term? How well equipped are organisations to cope with disruption and delay. Or, more significantly, the financial impact of events outwith the scope of their anticipation, control and measurement, upon their own and their customers’ business?

Black Swans: A Corporate Governance “blind spot”

How many have really assessed “their fitness”? I suspect that, as the focus for so long has been “lean”, that some will be so fragile that, failure is inevitable…but the only way to know where an the operation stands – how structurally robust it is – is to measure it. That is precisely what we, at Ontonix, are able to do!

The discovery of two bomb devices en route to the US has resulted in proposals to tighten air cargo security. Yet, without standard security measures which are internationally applicable, this will be difficult to enforce. Meanwhile, more stringent restrictions may adversely impact wider economies as a whole, with many sectors depending on timely cargo deliveries.

The recent events in the air cargo industry, where two bomb devices originating in Yemen were intercepted by security officials in Dubai and the UK on their way to the US, have shaken the foundations of air freight to its core. Apart from passenger safety considerations, the air cargo industry and the impact on the wider economy are at stake. Furthermore, most passenger airlines carry air cargo in the belly of the plane, so the threat applies to both areas of air transport. Global volume for the air freight industry is estimated to reach almost 200 billion freight tonne kilometres in 2010, of which a substantial percentage is carried on passenger aircrafts…

Read more at Datamonitor Research Store – Changes to air cargo security will have repercussions.

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What is a “Risk Leader”? – Part 1


This graphic from AT Kearney, who, quite rightly, refer to themselves as a “thought leader for strategic complexity management”  – they have a very good grasp of the problem, if not the solution. Their website is crammed with really useful information and infographics spelling out:

  1. the nature of the problem
  2. the financial and other benefits of managing complexity

This beautifully illustrates what it takes for a business to tackle “Advanced” or “Complexity Risk Management“.

ATKearney comp self assess

Considering that most companies sit “comfortably” in the LAGGARD category it looks like a pretty daunting and costly process to embark upon at a time when there is so much pressure on business in such a turbulent and uncertain economic environment.

PERVERSELY, THE ECONOMIC CLIMATE IS PRECISELY THE REASON THAT NOW IS THE TIME FOR RISK LEADERS TO STEP UP TO THE PLATE.

THE GOOD NEWS is that to do so need not be as traumatic as this graphic, or the ATK methodology, first suggest. Even better news is that ATK and others* believe that, by managing the complexity of the business and, therefore, reducing risk exposure, the business can actually improve its bottom-line…SUBSTANTIALLY.

*Reveal Your Hidden Profits

By now you I expect that you will want to about the Ontonix approach!?

More of that in Part 2: How to be a Risk Leader