According to Richard Williamson, a ComRisk 2017 speaker, historically, it has been very difficult to apply risk management systems.
Nevertheless, the latter are gaining more and more prominence, since relying on spreadsheets as the information repository has become quite rigid. The new generation is becoming more aware of the fact that running a company on spreadsheets might prove to be harmful for its potential growth; managing larger and larger amounts of data is becoming an ever-demanding process.
Furthermore, apart from the market pressures that drive the shift towards software management systems, regulations also trigger operational changes. As Richard mentions, there is, for example, a growing need for companies to prove that they are sustainable, that their raw materials are fairtrade etc. Software management systems facilitate the tracking process, and, therefore, make it easier for companies to report their activities.
Software management systems provide, therefore, a general better business visibility, and also bring operational risk –apart from market risk– to the forefront. There are already such players in the market, so the problem seems to have been addressed. Or maybe not?
“There are more software management systems providers entering the game, and there should be a ground where all of them stand in common.”
Richard Williamson brings up an interesting point when he mentions that there is a need for commoditizing the CTRM software. He explains that there are more software management systems providers entering the game, and there should be a ground where all of them stand in common. Namely, data standardisation should be the next thing, since the increasing divergence of all the different software voices might lead to the dissonance of the choir; and, if the latter happens, it actually erases the actual purpose of software management systems, which is to reduce operational risk and miscommunication between the parties involved in the trading process. Software providers should develop certain APIs (Application Programming Interfaces) in common, in order for standardisation to be guaranteed. Let the show begin.
Richard Williamson is the CEO of Generation 10, a commodity supply chain management and data analytics software company. Richard will participate in a panel discussion at ComRisk 2017; he will focus on supply chain management, and, specifically, on ways to secure the whole process.
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