September News: The Top 7 Supply Chain Risks in 2017 and more

The Top 7 Supply Chain Risks in 2017

Your organisation—regardless of size and industry—most likely relies on at least one supply chain to support its operations. Yet, as supply chains are an interconnected system, a disruption to just one link could have significant and detrimental effects. To ensure that you are not caught unaware, here are the top seven risks to be conscious of in 2017:


1. Road conditions. Depending on road conditions—such as construction, an accident or the quality of the road—  delivery drivers may be delayed or even lose your order.


2. Weather. Inclement weather can slow down delivery drivers, capsize ships and derail trains.


3. Fire. Warehouses and other storage buildings are susceptible to fire hazards. If a business connected to your supply chain does not properly manage its fire risks, you could face a long-term disruption.


4. Heat. Items—such as food, chemicals and pharmaceuticals—can be sensitive to shifts in temperature. If these items are not properly stored and shipped, they can be spoiled or ruined by the time they arrive.


5.Cyber. Cyber-criminals can access carriers’ documentation systems, steal lorry drivers’ identities or reroute the delivery to a location    of their choosing.


6.Theft. Whether your delivery is travelling by road, rail or sea, there is the chance that criminals could intercept and steal it.  


7.Coveted cargo. Depending on what items—especially high-end electronics—are being delivered to your business, your supply chain may be an attractive target for criminals.


To mitigate potential risks to your supply chain, verify what your suppliers’ insurance covers and have a rapport with alternative suppliers in case you need a substitute. In addition, contact Inspire Insurance Services to better understand the extent of your risk exposures. 

The Sectors Hit the Worst by Higher Fines


In 2016-17, the HSE collected £61,579,494.21 in fines, which was nearly twice the amount collected in 2015-16, according to research from law firm Clyde & Co. A reason for the significant increase is that, in February 2016, the new guidelines from the Sentencing Council came into force. These amendments dramatically increased fines for corporate manslaughter, food safety and hygiene offences, and health and safety offences. Within the first year, the amount that the HSE collected in fines increased by 74 per cent, and local authority fines rose by a massive 1,870 per cent.


The industry sectors most affected by the new Sentencing Council guidelines have been manufacturing and construction. In fact, the value of fines collected from the manufacturing sector in 2016-17 was £22.8 million, a 99 per cent increase over the £11.4 million in 2015-16. Construction fared slightly better—jumping 83 per cent from £7 million in 2015-16 to £13 million in 2016-17, and representing 21 per cent of the overall total fines imposed by the HSE in 2016-17. What’s more, there have been more fines that exceed £1 million in 2016-17 than in the previous 15 years combined. This statistic, more than any other, illustrates the trend of higher health and safety fines.


Even though these statistics are startling, there are proactive measures that your organisation can take to ensure that you are protected and compliant. The most straightforward of these is to conduct a thorough annual risk assessment for each process and department within your organisation. To bolster your organisation’s health and safety practices as well as risk management processes, contact the professionals at Inspire Insurance today.

DID YOU KNOW?


Had the General Data Protection Regulation (GDPR) been in place during 2016-17, the Information Commissioner’s Office would have collected £69 million in fines rather than £880,000. Fines under the GDPR are steep, with potential fines of up to €20 million (roughly £16 million), or 4 per cent of annual turnover—whichever is higher—for violating the basic principles related to data security or for violating consumer consent. Continue reading to learn what steps your organisation needs to take in order to be compliant.