2. During a webinar interview, a Fortune 500 risk
manager was asked what kept her awake at
night. “Supply chain risk,” she answered. With
increasing globalization and fewer sourcing
options as companies fold or merge, supply
chain risk management has become a necessity.
When properly managed and insured, your
supply chain management process can give you
an advantage.
3. The top three supply chain risks include natural
disasters, telecommunications and information
technology problems, and supplier delivery
problems. Here are a few tips to help you
manage supply chain risk:
4. • Analyze the risk associated with
untested or geographically
distant vendors. Fuel cost
volatility and international
piracy may be very real threats
to your global supply chain.
• Perform due diligence on new
suppliers. Seek expert advice
about potential vendors before
you sign any contracts.
5. • Strike the right balance
between increased risk
and competitiveness. Saving
money by switching vendors
may seem like a good decision
until you lose money or damage
your company’s reputation
because the arrangement fails.
• If your brand is tarnished,
it may take your management
team years to repair your
organization’s reputation.
Evaluate each link in your
supply chain.
6. In the past, physical damage to your assets had to
occur before insurance coverage would apply; now
insurance carriers offer more comprehensive
supply chain coverage. Perils such as pandemics,
civil unrest or the loss of a supplier may all be
insurable.
