It’s a little perverse that looking down the World Economic Forum (WEF)’s economic risks forecast, food price volatility and energy price spikes are already tangible concerns for many countries - and we’ve barely scraped the start of the decade.

Meanwhile, a recent report by research and analyst firm Mactavish indicates that UK supply chain risk has risen sharply during the downturn, partly in tune with cost-cutting moves further up the agenda. As a previous blog post notes, recent months have seen a surge in litigation as businesses enter into imprudent outsourcing relationships or, in the scramble for work, attract business commitments they are unable to fulfil. The immediate dangers are obvious. 

The US, it seems, is little different. An survey published this month by supplier information management company Aravo highlights how unprepared Fortune 1000 companies are for supplier failures. Most notably, over half the respondents kept less than 20% of their supply base under active risk management.

Risk, it seems, isn’t taking new forms. But, if you follow the central themes of the WEF report, the broadening interdependency of countries and businesses creates all sorts of exposed areas. In particular, the ongoing drive into emerging markets and the vulnerability of certain markets to unrealised recovery are pressing concerns. As is the notable fear that China’s growth is unpredictable enough to have far-reaching repercussions.

Reading between the lines, risk is everywhere in the current economy. The worrying part is the areas of these surveys that highlight how little organisations are responding to the challenge. It might appear a bit flippant, but it's worth pointing out that if risk is spreading as supply chains become more complex it should be a priority to manage that risk. Each failure in a chain has the potential to impact a growing number of businesses.

The idea of a ‘house of cards’ was probably dried up during the credit crunch, but you get the idea.

And if that’s not scary enough, what’s truly worrying is the polls that show that sophisticated organisations are concerned about risk but aren’t coming up with consistent strategies to recognise and respond to failure in the supply chain. 

Not a great way to start the year, overhauling a risk management system. On the other hand, many won’t - but that's probably a risk not worth taking.