industry news round-up supply chain management skills shortage undermines UK growth Lack of training and skills in supply chain management is undermining the UKs economic recovery, according to the Chartered Institute of Procurement & Supply (CIPS). As global supply chain risk reaches its highest level for nearly two years, according to the Q2 2015 CIPS Risk Index, CIPS has reported its findings from a survey of 460 supply chain professionals. The results show that 45 per cent of UK supply chain managers say their employer has not provided them with the requisite training and 79 per cent of these inadequately trained managers admit malpractice could be happening in their supply chains. David Noble, CIPS Group CEO, said: Supply chain managers are the first line of defence for British consumers and businesses. They protect shoppers from harmful products, stop our businesses from being ripped off and keep slavery out of Britains supply chains. These figures show that our tentative recovery is being undermined by a lack of skills. Without them, we risk building our growth on human rights abuses and malpractice abroad. Supply chain professionals are doing the best they can with insufficient training, but as the threats to supply chains evolve, so skills must be continuously renewed. You wouldnt trust an underskilled surgeon, using outdated equipment, to operate but that is often what is happening in the management of our supply chains. Regulator pressure pushes risk vacancies up 33 per cent Business confidence and pressure from regulators drove the number of permanent risk vacancies up by 33 per cent in June, compared to the same period last year. The Robert Walters City Jobs Index which tracks how many jobs are available, and the number of people seeking jobs in the City of London, per month also indicated that the number of candidates available for permanent roles had slumped by 15 per cent. Among contract roles, the number of vacancies grew by 39 per cent, while the number of applicants fell by 11 per cent. The risk sector is facing an acute skills shortage, particularly among contract roles, where there are Currency battles threaten global trade Emerging market currency weaknesses are reducing imports and, thereby, hurting global trade without any benefit to export volumes, research in more than 100 countries has shown. A Financial Times study indicates that any currency wars between developing nations may lead to a reduction in global trade, and even in economic growth, rather than just reapportioning a fixed level of trade between winners and losers. Meanwhile some countries are thought to be devaluing their currencies competitively, to steal market share by undercutting competitors. Mohamed El-Erian, chief economic adviser to Allianz, and chairman of US President Barack Obamas Global Development Council, warns: We risk slipping into a beggar-thy-neighbour, competitive spiral of currency devaluations, with all the currency overshoots and volatility that go with that. about 2.7 vacancies per candidate. The skills shortage is less acute for permanent roles, but demand continues to outstrip supply. Across financial services, employers continue to favour full-time roles. The number of permanent positions was up seven per cent in June 2015 compared to the same time last year, while contract roles fell by 10 per cent. Chad Lawson, associate director, Risk Recruitment, said: We have seen an increase in hiring across all areas of risk, but vacancies have increased, particularly in operational risk within assetmanagement firms, market and credit risk methodology, model governance and model audit roles. Large companies flatlining on sustainability risk disclosure The worlds largest listed companies are stalling on disclosure of sustainability issues, according to a global ranking of stock exchanges. The research compiled by advisory company Corporate Knights and investment house Aviva reveals that just 37 per cent of listed firms report the amount of greenhouse gases they emit. This has left investors concerned, and prompted calls for intervention by regulators and a move towards mandatory disclosures on sustainability issues. Global stock exchanges were ranked in the study based on their sustainability reporting, with the Helsinki Stock Exchange rated number one. None of the three major North American exchanges made the top 10. Mark Wilson, group chief executive officer at Aviva, said: Investors need data on the long-term sustainability performance of companies to make sustainable long-term investment decisions. As the inclusive capitalism movement puts it: We treasure what we measure. The stock exchanges of Qatar, Kuwait, New Zealand, Lima and Saudi Arabia were the worst performers. City Risk Index 20152025 launched Powered by groundbreaking research that identifies 18 man-made and natural threats to 301 cities with a potential impact on economic output valued at US$4.56tn the City Risk Index 2015-2025 has been launched by Lloyds. The research was carried out by the Cambridge Centre for Risk Studies, at the University of Cambridge Judge Business School. It shows how governments, businesses and communities could do more to mitigate risk and improve resilience in the face of systemic, catastrophic shocks. With the balance of fiscal power shifting from North America and western Europe to the emerging economies of Asia, Latin America and Africa, global distribution of wealth is changing rapidly. Urbanisation is also occurring at speed. As mega-cities rise alongside established centres of prosperity and production, the Lloyds City Risk Index (LCRI) projects: 900m people living in Chinese cities by 2025; 15.57 per cent GDP growth in Lagos, Nigeria, from 2015-2025; and 7.79 per cent GDP growth in Lima, Peru, over the same period. The LCRI shows that this concentration of GDP growth increases economic exposure to natural and manmade catastrophes, including: earthquake; oil-price shock; volcanic eruption; market crash; human pandemic; solar storm; plant epidemic; and cyber attack. By modelling and measuring such shocks, and improving resilience through insurance protection, LCRI expects to reduce significantly the financial impact of catastrophes. See www.lloyds.com/cityriskindex Wheatley steps down as head of FCA after chancellor intervenes Martin Wheatley is to be replaced as chief executive of the Financial Conduct Authority (FCA) after the Chancellor of the Exchequer, George Osborne, told him his term would not be renewed. Wheatleys FCA colleague Tracey McDermott will take over in a caretaker role while a permanent replacement is sought. Osborne said that different leadership is needed to progress the work of the regulator. He added: Britain needs a tough, strong financial conduct regulator to build on those foundations and take the organisation to the next stage of its development. Wheatley has been in the role for four years, having helped to establish the FCA and then lead it since its launch. His term was up for renewal in March 2016, and he will stay on in an advisory role. FCA chairman John Griffith-Jones said: Martin has done an outstanding job as chief executive, setting up and leading the FCA over the past four years. We owe him a lot, and I and my board would like to thank him for his great efforts in setting up the organisation, and for the contribution he has made to putting conduct so firmly at the top of the financial services agenda.