SCRS Conference Day 1 Session #4
The Risk Management Canvas and Key to Strategic Foresight with Risk Management, Audit and Data intelligence
By Ms. Vivian Xu, Head of Internal Audit, Compliance and Security, Asia Pacific, Bose
At the recent Supply Chain Resilience and Sustainability (SCRS) Conference 2024 in Shanghai, China on June 25th and 26th, Ms. Vivian Xu, Head of Internal Audit, Compliance and Security in Asia Pacific at Bose, took the stage to deliver a keynote address that resonated deeply with attendees. As a seasoned leader in security, internal audit, and compliance across the Asia-Pacific region, Vivian provided insightful perspectives on navigating the complexities of modern supply chains. Hosted by the Transported Asset Protection Association Asia Pacific (TAPA APAC), this year’s SCRS conference brought together over 250 global leaders to explore strategies, technologies, and practices crucial for fostering resilient and sustainable supply chains in today’s rapidly evolving global environment.
Themed “NextGen Supply Chains: Resilience & Brand Protection”, this year’s conference focused on addressing critical supply chain challenges. One of the key highlights was the launch of TAPA APAC’s Brand Protection Initiative with the end-goal of establishing the TAPA Brand Protection Standard for its members. By enhancing supply chain resilience and reinforcing consumer trust in brands, BPS aims to prevent counterfeits from entering the legitimate supply chain, emphasizing on the importance of proactive measures in an interconnected global marketplace.
Vivian delivered a thought-provoking keynote at the SCRS Conference, focusing on the intricate dynamics of risk management, audit practices, and data intelligence within corporate frameworks. Addressing the audience in Mandarin, Vivian immediately captured attention by outlining the foundational principles of effective risk management planning. Vivian’s keynote was structured into four comprehensive segments – Risk Management Canvas; Risk Management and Corporate Strategy; Internal Audit, Compliance and Security; and Game Modeling Case, each shedding light on critical aspects of corporate governance and risk mitigation strategies.
Vivian delivered a thought-provoking keynote at the SCRS Conference, focusing on the intricate dynamics of risk management, audit practices, and data intelligence within corporate frameworks. Addressing the audience in Mandarin, Vivian immediately captured attention by outlining the foundational principles of effective risk management planning. Vivian’s keynote was structured into four comprehensive segments – Risk Management Canvas; Risk Management and Corporate Strategy; Internal Audit, Compliance and Security; and Game Modeling Case, each shedding light on critical aspects of corporate governance and risk mitigation strategies.
Risk Management Planning: Identifying and Prioritizing Corporate Risks
She began by outlining the fundamental elements of risk management planning, emphasizing the need for companies to identify and prioritize risks effectively. Companies should meticulously identify and prioritize risks across 7 dimensions – Market risk, Operational risk, Environmental risk, Reputation risk, Financial risk, Technical risk and Legal risk.
Market risk encompasses uncertainties related to changes in market conditions, demand fluctuations, and competitive dynamics. Operational risk, she emphasized, pertains to vulnerabilities within operational processes, including supply chain disruptions, technology failures, and human error. Environmental risk involves potential impacts from ecological factors, regulatory changes, and sustainability challenges, urging companies to integrate environmental considerations into their risk frameworks.
Vivian highlighted the significance of reputation risk, stressing how adverse publicity or stakeholder perception can significantly impact brand equity and market standing. Financial risk encompasses exposures related to capital structure, liquidity management, and financial market volatility. Technical risk refers to challenges arising from technological advancements, cybersecurity threats, and IT infrastructure vulnerabilities. Lastly, Vivian addressed legal risk, discussing the implications of regulatory compliance, litigation exposure, and contractual obligations on organizational resilience.
“Understanding these seven fundamental risks is essential,” Vivian stressed, “as they form the basis for proactive risk mitigation strategies that are crucial for sustaining business resilience and ensuring long-term growth.”
Integration with Company Strategy: Aligning Risk Mitigation with Business Objectives
Transitioning seamlessly into the integration of risk management with company strategy, Vivian illustrated through practical scenarios how aligning risk mitigation efforts with overarching corporate objectives is imperative. “Risk management cannot operate in isolation,” she remarked. “It must be intricately woven into the fabric of our strategic planning to safeguard business continuity and enhance competitiveness.” Vivian’s insights resonated strongly with attendees, who acknowledged the strategic advantage of preemptively managing risks associated with market expansions, organizational changes, and technological advancements. By strategically aligning risk management with business goals, Vivian highlighted how companies can not only mitigate potential threats but also capitalize on emerging opportunities.
Internal Audit, Compliance, and Security: Strengthening Corporate Governance
In her segment on integrating risk management with company strategy, Vivian provided detailed examples of how proactive risk identification and mitigation can serve as catalysts for achieving sustainable growth. “The success of our risk management efforts hinges on their alignment with strategic objectives,” she asserted. Vivian underscored the importance of anticipating and addressing risks associated with market volatility, regulatory changes, and competitive pressures. “By embedding risk management into strategic decision-making processes,” Vivian explained, “we empower organizations to navigate uncertainties with confidence, fostering agility and resilience.”
Furthermore, Vivian highlighted the role of robust risk management frameworks in supporting innovation and market expansion initiatives. She emphasized that a proactive approach to risk management not only safeguards against potential disruptions but also enables companies to capitalize on emerging trends and consumer preferences. Vivian’s practical insights into aligning risk management with business strategy left attendees with a clear understanding of how strategic foresight and proactive risk mitigation can synergistically drive sustainable business success in an increasingly competitive global landscape.
Application of Game Theory: Enhancing Decision-Making in Complex Scenarios
Vivian’s presentation culminated in an engaging exploration of game theory applied to an anti-fraud case study involving three parties – senior management, risk control officers, and operational managers, illustrating the complexities of decision-making amid potential fraud risks. In this case, the interactions between parties demonstrate the varied impacts of decisions under asymmetric information conditions. The game theory analysis revealed that when the operations manager opts not to accept commissions, and the risk control officer conducts thorough checks, equilibrium can be achieved regardless of the CEO’s strictness. This analysis underscores the critical role of risk control positions in preventing corporate corruption.
The anti-fraud case showcased how mathematical modeling can enhance decision-making in complex, conflict-ridden scenarios within organizations. “Game theory allows us to simulate and assess the implications of various decisions on company performance and risk exposure,” Vivian explained how the game theory principles can help businesses navigate ethical dilemmas and mitigate fraud risks effectively. Her insights resonated with conference attendees, highlighting the value of innovative approaches in enhancing organizational resilience and fostering a culture of integrity and compliance.
Empowering Businesses with Strategic Risk Management
Throughout her keynote, Vivian’s emphasis on aligning risk management practices with strategic foresight resonated deeply with attendees, offering practical guidance on navigating uncertainties in today’s dynamic business environment. Her insights into leveraging audit processes and data intelligence to enhance corporate governance and compliance provided attendees with actionable strategies to navigate evolving regulatory landscapes effectively. By bridging theory with practical application, Vivian’s address empowered attendees to embrace risk management as a strategic enabler of business success in an interconnected global economy.
Vivian’s contributions at the SCRS Conference underscored the critical synergy between effective risk management practices and the broader goals of TAPA APAC in ensuring safe and sustainable supply chains across Asia Pacific. TAPA Standards ensure that businesses put in place the minimum security requirements and risk management strategies to safeguard their supply chain against various threats, including theft, tampering, and counterfeiting to foster a secure environment for businesses operating within the Asia Pacific region.
To learn more about TAPA APAC and TAPA Standards, please visit www.tapa-apac.org or email to info@tapa-apac.org.
About the Speaker
Ms. Vivian Xu
Head of Internal Audit, Compliance and Security, Asia Pacific, Bose
Ms. Vivian Xu has served many foreign-funded enterprises such as Wal Mart China, Wal Mart Global Sourcing, Nike China, and is now the head of Asia Pacific security, compliance, and internal audit of Bose. She have over 15 years of work experience in the retail industry, specializing in areas such as auditing, security, investigation, loss control, and risk management. She holds a WZ certified Advanced Certificate in Interview and Interrogation. Currently serving as a career mentor at Antai School of Economics and Management, Jiaotong University, a lecturer in TAPA supply chain security, the deputy director of the Risk Committee in CCFA. In 2020, published an article in the CCFA journal titled “Three Methods to Reshape Retail Loss Prevention Professional Ability”; In 2022, led master’s students from the Antai School of Management at Jiaotong University to participate in writing the 2021 China Retail Industry Risk Report; In 2022, published an article on the ASIS platform titled “Strategies for Women in Critical Situations”.
Email: vivianxuvivian@126.com
LinkedIn: www.linkedin.com/in/vivian-xu-30777766