Many people think that risk management is only for large corporations. This is not correct! Risk management is a NECESSITY FOR EVERY BUSINESS. The hard part is to properly align risk management processes to each unique individual organisation.

The world is undeniably riskier. Change was increasingly ever more rapidly, and this is accelerated by COVID. Increasing digitisation of business processes will inevitably increase cybersecurity risk. The world is still highly connected, and McKinsey estimate that supply chain shocks will reduce profits by 42% of annual EBITDA profits every 10 years.

In 2017 and 2018 the year on year growth in South Africa’s manufacturing production declined substantially. In 1994 manufacturing accounted for 20% of GDP. It now stands at 14%.

In February 2019, local utilisation of available manufacturing capacity was sitting at 80.8%, leaving 12.2% capacity unused.

In a sluggish economy, where demand is weak, margin management is a business imperative.

Manufacturing executives often think they know how well their company is managing margins,