Prices Are Rising. How to Prepare for Inflation Now & Later.
LogicGate | July 13, 2022
It is tough to ignore price increases at the pump or grocery store. We are beginning to adjust, but with conversations about price increases and inflation happening more regularly, businesses are thinking about the risk landscape. In this episode of GRC & Me, LogicGate’s CEO, Matt Kunkel, takes on the role of guest host and is joined by Fairway Independent Mortgage Company's Chief Risk Officer, John Hotchkiss. Their conversation covers how they see inflation relating to the mortgage industry and the impact on the larger economy.
Here are some other highlights from the episode:
Significant financial changes are coming on the horizon; you need to plan and prepare for potential risks that could happen.
The inflation we're seeing now is more of an inventory/supply chain issue, not a demand issue.
If there isn't an increase in demand and no inventory is out there, then inflation becomes more of an inventory and supply chain story.
There's inflationary risk in all markets. We can look back on the last few years and recall the shortages we experienced during the first year of the COVID pandemic. These existential risks are crucial for risk managers to understand and prepare for.
You can't predict recessions; recessions are something you can look back on retrospectively. You need to have ALL the data to examine it properly.
The true importance of a risk department is to protect an organization, understand and mitigate risks, and give organizations a strategic advantage.
To catch Matt and John’s full conversation, listen to the entire podcast episode here: