Understanding risk appetite is a critical aspect of any business leaders’ skillset, and mitigating risk should be up there too. Although it’s important not to stifle the entrepreneurial instincts of any enterprise, common sense must also be applied to offset any unnecessary danger.

As the collapse of Carillion continues to unravel, concerns are growing about the security of companies in the wider supply chain of the building giant. Some of them may have not taken out full due diligence before entering agreements. In that context, we consider what finance directors caught in the maelstrom should be doing next.

It’s also a timely moment for FDs to be producing a list of checks to minimise the risk in any supply chain relationship. The Chartered Institute of Credit Management offers some advice in our lead article.