May 17, 2020

Business and consumer risk: The Travelers Risk Index 2016

consumer risk
business risk
travellers risk index 2016
Dale Benton
3 min
Business and consumer risk: The Travelers Risk Index 2016
Consumers and business leaders in America are most concerned about cyber threats, a changing workforce and severe weather, thats according to the 2016 T...

Consumers and business leaders in America are most concerned about cyber threats, a changing workforce and severe weather, that’s according to the 2016 Travelers Risk Index.

Launched in 2013, the Travelers Risk Index is an annual study to assess Americans’ perception about risk. The index surveyed 1,001 consumers between the ages of 18 and 69 as well as 1,202 business owners and decision makers.

Not to stop there, of those business owners and decision makers, 493 were small business, 453 midsixed business and 256 large business.

The survey included 11 specific industry sectors.

Here we take a look at some of the key figures to come out of the 2016 Travelers Risk Index:

The threat of cyber attacks

Among those asked, 54 percent worry “some or a great deal” about technology-related cyber risks, whereas 51 percent of consumers share this concern.

Looking closer at consumers, the index reveals that more women worry about cyber risks, specifically the threat of accounts being hacked by men. 68 percent in fact, whereas only 56 percent of men share the same concern.

Feeling confident behind the wheel

More than nine in 10 consumers believe that distracted driving is a top concern. To mirror that, one third of businesses in the survey highlighted it as a worry to them. For businesses, interestingly, 65 percent of them have employees who use a personal car for business purposes.

Changing of the guard

The workforces of today, and tomorrow, are changing. Whether it’s down to demographic changes, technological innovation or the impacts of the global economy, 45 percent of business leaders and consumers are concerned by a changing workforce. 49 percent of all businesses actually listed a changing workforce as the most worrisome trend, while 50 percent are concerned about attracting and retaining talent and skilled staff.

Consumers, on the other hand, worry about keeping pace with new workforce requirements and jobs moving overseas. 27 percent in fact.

A changing workforce is the highest concern among the ages 18-39 (32 percent) and lowest among those ages 55-69 (19 percent)

One might suggest that the last figure is rather unsurprising.

Tightening of the purse strings

Financial concerns worry everyone. No need to check the figures on that.

But as we are looking at the index, we may as well.

70 percent of consumers worry some or a great deal about financial concerns, such as unemployment and job security as well as financial hardship and the economy.

Looking at it from a business perspective, businesses worry mostly about medical cost inflation and employee benefit cost.

Always take the weather with you

Climate volatility and severe weather is a big concern for businesses and consumers, noting that severe weather is happening more often and becoming more and more disruptive. Business interruption, created through severe weather, is a concern shared by 40 percent of all business.

For consumers, 61 percent believe that severe weather is becoming more frequent across the country, with 39 percent believing that damage to property, homes or automobiles is more likely.

Looking to the future, the top trends believed to pose the greatest risk over the next five years are:

  • Changing workforce – getting old and replaced by millennials resulting in a changing workforce skill availability
  • Technological change – self-explanatory really, but increased connectivity and IoT, automation
  • Empowered customers – increased access to data and information from customers and the rising expectations of speed, convenience and customisation from business
  • E-business – increasing use of digital, including mobile platforms, to conduct commerce
  • Energy dynamics – energy costs fluctuating, renewable energy and the emergence of energy sources
  • Sharing economy – the emergence of businesses such as Uber, Airbnb and Zipcar

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Jun 11, 2021

NTT DATA Services, Remodelling Supply Chains for Resilience

6 min
Joey Dean, Managing Director of healthcare consulting at NTT DATA Services, shares remodelling strategies for more resilient supply chains

Joey Dean, the man with the coolest name ever and Managing Director in the healthcare consulting practice for NTT DATA and is focused on delivering workplace transformation and enabling the future workforce for healthcare providers. Dean also leads client innovation programs to enhance service delivery and business outcomes for clients.

The pandemic has shifted priorities and created opportunities to do things differently, and companies are now looking to build more resilient supply chains, none needed more urgently than those within the healthcare system. Dean shares with us how he feels they can get there.

A Multi-Vendor Sourcing Approach

“Healthcare systems cannot afford delays in the supply chain when there are lives at stake. Healthcare procurement teams are looking at multi-vendor sourcing strategies, stockpiling more inventory, and ways to use data and AI to have a predictive view into the future and drive greater efficiency.

“The priority should be to shore up procurement channels and re-evaluate inventory management norms, i.e. stockpiling for assurance. Health systems should take the opportunity to renegotiate with their current vendors and broaden the supplier channel. Through those efforts, work with suppliers that have greater geographic diversity and transparency around manufacturing data, process, and continuity plans,” says Dean.

But here ensues the never-ending battle of domestic vs global supply chains. As I see it, domestic sourcing limits the high-risk exposure related to offshore sourcing— Canada’s issue with importing the vaccine is a good example of that. So, of course, I had to ask, for lifesaving products, is building domestic capabilities an option that is being considered?

“Domestic supply chains are sparse or have a high dependence on overseas centres for parts and raw materials. There are measures being discussed from a legislative perspective to drive more domestic sourcing, and there will need to be a concerted effort by Western countries through a mix of investments and financial incentives,” Dean explains.

Wielding Big Tech for Better Outcomes

So, that’s a long way off. In the meantime, leveraging technology is another way to mitigate the risks that lie within global supply chains while decreasing costs and improving quality. Dean expands on the potential of blockchain and AI in the industry

“Blockchain is particularly interesting in creating more transparency and visibility across all supply chain activities. Organisations can create a decentralised record of all transactions to track assets from production to delivery or use by end-user. This increased supply chain transparency provides more visibility to both buyers and suppliers to resolve disputes and build more trusting relationships. Another benefit is that the validation of data is more efficient to prioritise time on the delivery of goods and services to reduce cost and improve quality. 

“Artificial Intelligence and Machine Learning (AI/ML) is another area where there’s incredible value in processing massive amounts of data to aggregate and normalise the data to produce proactive recommendations on actions to improve the speed and cost-efficiency of the supply chain.”

Evolving Procurement Models 

From asking more of suppliers to beefing up stocks, Dean believes procurement models should be remodelled to favour resilience, mitigate risk and ensure the needs of the customer are kept in view. 

“The bottom line is that healthcare systems are expecting more from their suppliers. While transactional approaches focused solely on price and transactions have been the norm, collaborative relationships, where the buyer and supplier establish mutual objectives and outcomes, drives a trusting and transparent relationship. Healthcare systems are also looking to multi-vendor strategies to mitigate risk, so it is imperative for suppliers to stand out and embrace evolving procurement models.

“Healthcare systems are looking at partners that can establish domestic centres for supplies to mitigate the risks of having ‘all of their eggs’ in overseas locations. Suppliers should look to perform a strategic evaluation review that includes a distribution network analysis and distribution footprint review to understand cost, service, flexibility, and risks. Included in that strategy should be a “voice of the customer” assessment to understand current pain points and needs of customers.”

“Healthcare supply chain leaders are re-evaluating the Just In Time (JIT) model with supplies delivered on a regular basis. The approach does not require an investment in infrastructure but leaves organisations open to risk of disruption. Having domestic centres and warehousing from suppliers gives healthcare systems the ability to have inventory on hand without having to invest in their own infrastructure. Also, in the spirit of transparency, having predictive views into inventory levels can help enable better decision making from both sides.”

But, again, I had to ask, what about the risks and associated costs that come with higher inventory levels, such as expired product if there isn’t fast enough turnover, tying up cash flow, warehousing and inventory management costs?

“In the current supply chain environment, it is advisable for buyers to carry an in-house inventory on a just-in-time basis, while suppliers take a just-in-case approach, preserving capacity for surges, retaining safety stock, and building rapid replenishment channels for restock. But the risk of expired product is very real. This could be curbed with better data intelligence and improved technology that could forecast surges and predictively automate future supply needs. In this way, ordering would be more data-driven and rationalised to align with anticipated surges. Further adoption of data and intelligence and will be crucial for modernised buying in the new normal.

The Challenges

These are tough tasks, so I asked Dean to speak to some of the challenges. Luckily, he’s a patient guy with a lot to say.

On managing stakeholders and ensuring alignment on priorities and objectives, Dean says, “In order for managing stakeholders to stay aligned on priorities, they’ll need more transparency and collaborative win-win business relationships in which both healthcare systems and medical device manufacturers are equally committed to each other’s success. On the healthcare side, they need to understand where parts and products are manufactured to perform more predictive data and analytics for forecasting and planning efforts. And the manufacturers should offer more data transparency which will result in better planning and forecasting to navigate the ebbs and flows and enable better decision-making by healthcare systems.

Due to the sensitive nature of the information being requested, the effort to increase visibility is typically met with a lot of reluctance and push back. Dean essentially puts the onus back on suppliers to get with the times. “Traditionally, the relationships between buyers and suppliers are transactional, based only on the transaction between the two parties: what is the supplier providing, at what cost, and for what length of time. The relationship begins and ends there. The tide is shifting, and buyers expect more from their suppliers, especially given what the pandemic exposed around the fragility of the supply chain. The suppliers that get ahead of this will not only reap the benefits of improved relationships, but they will be able to take action on insights derived from greater visibility to manage risks more effectively.”

He offers a final tip. “A first step in enabling a supply chain data exchange is to make sure partners and buyers are aware of the conditions throughout the supply chain based on real-time data to enable predictive views into delays and disruptions. With well understand data sets, both parties can respond more effectively and work together when disruptions occur.”

As for where supply chain is heading, Dean says, “Moving forward, we’ll continue to see a shift toward Robotic Process Automation (RPA), Artificial Intelligence (AI), and advanced analytics to optimise the supply chain. The pandemic, as it has done in many other industries, will accelerate the move to digital, with the benefits of improving efficiency, visibility, and error rate. AI can consume enormous amounts of data to drive real-time pattern detection and mitigate risk from global disruptive events.”


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