Financial Services - a risky business?

Financial Services is a hot topic across all industry and national press, as the fall out from the global financial crisis unfolds. However, it is still proving to be a highly desirable industry, attracting some of the best procurement professionals who operate within the Indirects/IT Procurement field, often providing a good benchmark when other potential employers outside of FS review candidate's capability.

So what impact will the economic downturn have on the indirect spend supply chain, through the financial services sector?

"Recent events have demonstrated how profitability and revenue in financial services organisations can be adversely affected by market volatility. Procurement has an increasingly important role to play in ensuring that organisation input costs do not suffer from similar supply side market and economic effects by understanding and mitigating against supply chain risk."

Head of Procurement Global Investment Management organisation

As mentioned in a recent article by a leading director of an investment bank, it is essential to build effective SRM/VRM capability, to evaluate the risk with vendors pre engagement and continue to assess and mitigate risk post engagement. So I see that these are going to become more common criteria when candidates are being screened for opportunities.

From a recruitment perspective there has been a lot of movement, particularly through the senior levels; bringing change, building reputations and improving credibility. Added to that is the expansion of investment into strategic procurement in institutions outside of the main global players: encouragingly, procurement is certainly being recognised as 'value add' within the industry.

However, a huge challenge to procurement within Financial Services is - and will continue to be - ever increasing regulation.

"One of the biggest challenges facing CPO's within the financial services sector will be that of regulatory oversight. At the same time, this increased oversight will drive greater awareness of the skills and capabilities that a proactive function can bring to bear."

Barry Hooper CPO Nationwide Building Society

Risk mitigation, policy, control, procedures and governance are common knowledge criteria featuring in all role profiles for our clients in FS. For the prospective procurement professional entering into or moving within the industry, it is clear they must address and embrace the challenge.