Procurement Leaders: SEC Rules On Credit-Rating Agencies A Wake-Up Call For Procurement
September 1, 2014
Rapid Ratings SVP of Supplier Risk Management, Rose Kelly-Falls, says new SEC rules should be a wake-up call for procurement. The most direct impact will be on finance because it is that function which is the biggest user of the ratings. But, the faulty ratings on supplier financial health from the agencies can get passed down from finance to procurement, potentially presenting a misleading picture of a supplier’s viability. “That means procurement must be more involved with finance,” Kelly-Falls says. CPOs and their staff should be striving for more due diligence from finance, asking what tools finance has used to rate suppliers and where the numbers come from.