2. INTRODUCTION
Supply chain risk management is a critical aspect of modern business operations.
As global supply chain have become more complex and interconnected, they have
also become more vulnerable to disruption from a wide range of risks, including
natural disasters, geopolitical events, and more.
To help organizations mitigate these risks. PWC has developed a comprehensive
approach to supply chain risk management.
PWC approach to supply chain risk management is designed to help organizations
build more resilient supply chain that can withstand a wide range of potential
disruption.
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3. EXPLANATION OF REPORT
PwC's supply chain risk management report provides insights into the current state of supply chain risk
management, the challenges that organizations face, and the steps they can take to improve their risk
management capabilities. The report highlights the following key points:
Increasing Supply Chain Complexity: The
global pandemic has highlighted the
complexities and vulnerabilities of supply
chains.
Emerging Risks: Organizations need to be
aware of emerging risks such as geopolitical
risks, cybersecurity risks, and climate change
risks that can have a significant impact on their
supply chains.
Resilience as a Competitive Advantage:
Companies that can build resilience into their
supply chains will be better able to adapt to
disruptions and gain a competitive advantage.
Data and Analytics: Advanced data analytics can
help companies identify and manage risks in their
supply chains more effectively.
Collaboration and Transparency: Collaboration
and transparency with suppliers and other
stakeholders are essential to managing risks
effectively.
Building a Resilient Supply Chain: Organizations
should focus on building a resilient supply chain
by adopting a risk management framework,
developing risk mitigation strategies, and testing
their resilience through scenario planning and
stress testing.
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4. THE SUPPLY CHAIN AND RISK MANAGEMENT MATURITY
FRAMEWORK
Risk governance Flexibility and
redundancy in
product, network and
process architectures
Alignment between
partners in the
supply chain
Upstream and
downstream
supply chain
integration
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5. THE SUPPLY CHAIN AND RISK MANAGEMENT MATURITY
FRAMEWORK
Sample Footer Text
Alignment and
integration
between internal
business
functions
Complexity
management/
rationalisation
Data, models and
analytics
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6. FOUR LEVELS IN SUPPLY CHAIN OPERATIONS AND RISK
MANAGEMENT OF PWC
LEVEL 1
Functional supply
chain management
and ad-hoc
management of risk
LEVEL 2
Internal supply chain
integration and
positioning of
planned buffers to
absorb disruptions
LEVEL 3
External supply chain
collaboration and
proactive risk
response.
LEVEL 4
Dynamic supply
chain adaptation
and fully flexible
response to risk
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8. PRINCIPLES TO HELP MANAGE RISK AND PREPARE
FOR FUTURE :
Sample Footer Text
Thorough knowledge of company
Business and financial performance:
Investments in supply chain and risk
management processes are more resilient to
disruptions:
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9. PRINCIPLES TO HELP MANAGE RISK AND PREPARE
FOR FUTURE :
Investment in risk segmentation are
more resilient to disruptions:
Make supply chain management
capabilities a priority for better
performance:
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10. ASK THESE QUESTIONS TO MANAGE FUTURE RISK
AND OPPORTUNITIES
How have changes in the business environment and in your company's strategy
and operations increased the complexity in the various elements of your supply
chain?
Which parameters is your supply chain most sensitive to?
Do you regularly involve your risk management specialists?
Do you segment and mitigate risks in your supply chain?
Do you have sufficient insight into your supply chain partners’ operations?
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11. CONCLUSION
Supply chain risk management continue to draw attention of companies and other practitioners. This is
due to its role in the performance of the companies and the economy.
With globalization increasing competition and business functions becoming more complex, the supply
chain is becoming more vulnerable to unexpected disruption.
Effective reduction of the impacts of the dynamic environment on supply chain call for efficient supply
chain management and supply chain risk management.
There are different risk management tools that organizations should use to tailor their risk management
strategies towards effective mitigation of risk.
Overall, the PwC report on risk management can be a valuable resource for supply chain companies
looking to manage their risk. By providing insights into emerging risks, best practices, and case
studies, the report can help companies develop more effective risk management strategies and
improve their overall resilience
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