Bangladesh Factory Collapse: Lessons in Risk for the Retail Industry

The factory collapse in Bangladesh that killed more than 1,100 people highlights the risks that labor conditions can pose to workers and organizations’ bottom lines.

The Rana Plaza tragedy involves nearly half of the top 20 risks of 2013, as identified in a recent survey of risk professionals and C-Suite executives.

The April 24, 2013, factory collapse in Savar, Bangladesh that killed more than 1,100 people highlights the serious risks that labor conditions can pose not only to workers, but also to organizations’ reputations, supply chains, and bottom lines. In our latest Marsh Risk Management Research report, “Bangladesh Factory Collapse: Lessons in Risk for the Retail Industry,” we provide an overview of the wide range of risks retailers face when sourcing textile goods from Bangladesh and low-cost markets.

Written by experts from our supply chain, reputational risk and crisis management, and workforce strategies practices, “Bangladesh Factory Collapse: Lessons in Risk for the Retail Industry,” highlights specific measures retailers and suppliers can take to protect their supply chains, brands, and reputations when sourcing goods and labor from low-cost countries, including:

• Making an informed risk decision by taking a broad view of all the risks (reputational, supply chain, political, workforce health and safety).
• Working to improve labor conditions in Bangladesh and reform and strengthen audit processes there.
• Improving crisis response and compliance frameworks.
• Ensuring your organization can respond to a crisis quickly and appropriately.