In their debut book, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, Steven Levitt and Stephen J Dubner highlight the case of perceived risks versus actual risks by posing a seemingly simple question on parenting choices.
As a parent, which one of these neighbor’s homes would you feel safer to send your children over to play? The options being A) One that holds a licensed gun B) One that has a swimming pool in the backyard. At the outset option B seems like the obvious choice. Because it would seem just downright irresponsible parenting to knowingly send your little ones over to a neighbor’s house that carries weapon to kill. And therein lies the twist. According the to their data, those seemingly innocuous backyard swimming pools claim a far higher number of children’s lives than guns do in the United States. In fact their data suggest the likelihood of death in a swimming pool is as much as 100 times more than by a gun. The gap between things that we perceive as risk to those that actually pose real risk can be quite startling at times. And the blame squarely lies on preconceived notions taking precedence over analytical decision making.
And Business commerce is no exception to this. Because, while driving bottom line savings continues to top the wish list of the Chief Procurement Officer, the decision making path to get to that point often relies on perceptions and intuitions. Many organizations have traditionally relied on supplier risk management based on internal supplier metrics, user feedback or outdated information. Without the right visibility on supplier risk, businesses are unknowingly exposing themselves to untoward incidents that can affect brand repute, impact bottom line numbers, cause litigation and host of other situations that could have been easily avoided in the first place.
At SAP Ariba Live 2016, we showcase how the coming together of real-time intelligence and data science can help you mitigate supplier risk at every step of the spend management lifecycle. Real-time supplier risk visibility for real. Join us for the following sessions scheduled on 15th and 16th March at The Cosmopolitan of Las Vegas and interact with customers, industry analysts and SAP Ariba subject matter experts. Without accurate risk insights on your side, it could just be as fatal as picking the swimming pool over the gun as the safer choice. Or a vending machine over a great white shark.
Supplier Risk Mainstage session:
Michael Posner - Jerome Kohlberg Professor of Ethics and Finance at Leonard N. Stern School of Business
Stan Brown - Chief Procurement Officer, CA Technologies
Date: March 15th at 09:00 am
Breakout Session: Supplier Risk: What You Don’t See Can Hurt You
Speakers: Kurt Albertson – The Hackett Group
Stan Brown - CPO, CA Technologies
Richard Lazzara – IT Director, CA Technologies.
March 16 (4:15pm -5:15 pm)
Venue: Room Nolita 2
Breakout Session: Supplier Risk Management- A Look at Industry Trends and Best Practices
Speakers: Hernan De la Torre -Sr. Manager, Deloitte
Rich Alber- Director, Cybersecurity and Privacy Solutions ,PWC
John Morris - Power & Utilities Supply Chain Lead, E&Y
Moderator: Sundar Kamak, Vice President - Products and Innovation, SAP Ariba
Date: Tuesday, March 15, 2016, Time: 4:45-6 pm
Venue: Nolita 2
Customer Roundtable on Sustainability and Supplier Risk
March 15th: 12 - 1pm
March 16th: 7am - 8am
Venue: Belmont Ballroom