Security, Compliance Loss Prevention Part 10.pptx

Security,
Compliance
& Loss
Prevention

Important Dates
▶ Midterm 3/7/2024
▶ Assignment 3/13/2024
▶ Final 3/18/2024
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Terminal Learning
Objectives
▶ Hybrid Threats and Supply Chain
Safety Management
▶ Political Environment as a Factor
of Risk
▶ Internal versus External Supply
Chain Risks: A Risk Disclosure
Analysis
▶ The Secure Process Chain in
Aviation Security
▶ Protection of Buildings
▶ Risk Response Measures for the
Management of Theft Risk in Road
Freight Transport Chains

Hybrid Threats and
Supply Chain Safety
Management
▶ Hybrid threats and supply
chain safety management
are two distinct but
interconnected concepts that
relate to security and risk
management in various
domains, including
geopolitics, cybersecurity,
and business operations.

Hybrid Threats and
Supply Chain Safety
Management
▶ Hybrid Threats:
Hybrid threats refer to a
combination of conventional and
non-conventional tactics used
by state or non-state actors to
achieve their objectives. These
threats often blur the lines
between different forms of
warfare, such as conventional
military actions, cyber attacks,
information warfare, economic
coercion, and political
subversion. Hybrid threats
leverage multiple dimensions
simultaneously, making them
difficult to attribute and respond
to.
This Photo by Unknown Author is licensed under CC BY-SA

Hybrid Threats and
Supply Chain Safety
Management
▶ Key characteristics of hybrid
threats include:
• Multi-Domain Approach: Hybrid
threats operate across multiple
domains, including military,
economic, political, and
informational, to create confusion
and exploit vulnerabilities.
• Ambiguity: The use of multiple
tactics and actors often creates
ambiguity, making it challenging
to identify the responsible party
and appropriate response.
• Deniability: Perpetrators of
hybrid threats may attempt to
distance themselves from their
actions to avoid direct
confrontation.

Hybrid Threats and
Supply Chain Safety
Management
▶ Key characteristics of hybrid
threats include:
• Information Manipulation:
Information warfare plays a
crucial role, using disinformation,
propaganda, and media
manipulation to shape public
perception and influence
decision-making.
• Asymmetric Strategies: Hybrid
threats often involve weaker
actors exploiting the strengths
and vulnerabilities of stronger
opponents.
• Complexity: The interconnected
nature of hybrid threats requires
comprehensive and adaptable
responses that encompass
various domains.

Hybrid Threats and
Supply Chain Safety
Management
▶ Supply Chain Safety
Management:
Supply chain safety
management involves ensuring
the security, resilience, and
integrity of supply chains to
prevent disruptions and mitigate
risks. This concept is vital for
both public and private sectors,
as supply chains are susceptible
to various threats, including
natural disasters, cyber attacks,
geopolitical tensions, and even
hybrid threats.
This Photo by Unknown Author is licensed under CC BY

Hybrid Threats and
Supply Chain Safety
Management
▶ Key aspects of supply chain safety
management include:
• Risk Assessment: Identifying and
assessing potential risks and
vulnerabilities within the supply chain,
considering factors such as suppliers,
transportation, production, and
distribution.
• Resilience Planning: Developing
strategies to minimize the impact of
disruptions, including having backup
suppliers, diversified sourcing, and
robust contingency plans.
• Security Measures: Implementing
cybersecurity protocols, access
controls, and other security measures
to protect digital components of the
supply chain from cyber attacks.
• Transparency and Traceability:
Ensuring transparency and traceability
throughout the supply chain to identify
and address potential issues quickly.

Hybrid Threats and
Supply Chain Safety
Management
▶ Key aspects of supply chain safety
management include:
• Collaboration: Collaborating with
suppliers, partners, and
stakeholders to share information,
best practices, and resources to
collectively enhance supply chain
safety.
• Regulatory Compliance:
Adhering to relevant regulations
and standards related to supply
chain safety and data protection.
• Continuous Monitoring and
Improvement: Regularly
monitoring the supply chain,
conducting audits, and refining
safety measures based on
emerging risks and changing
circumstances.

Hybrid Threats and
Supply Chain Safety
Management
▶ The term HYBRID THREAT, came of
age during the global war on terrorism
that still plays its rough sport today.
Hybrid Threat is used to define threats
that combine both regular and irregular
forces and all other criminal forces all
unified to achieve a mutual goal. Hybrid
threats when used, shows the multiplicity
of different actors and how complex a
conflict especially in this era can be.
Hybrid Threat in supply chain
management, is completely different from
the counter-terrorism hybrid threat that we
all know; however, they both share similar
definitive roots. Over the years,
specialists and analysts in supply chain
risk management have used regular
actors such as hurricanes and all other
forms of natural and man-made disasters
to challenge supply chain risk mitigating
strategies and planning designs.

Hybrid Threats and
Supply Chain Safety
Management
▶ There are other regular actors
that threaten most
organization’s supply chains;
some of these threats are:
regional conflicts and foreseen
geo-political landscape
alongside socio-economic
issues. These and many more
are some of the regular actors
that most supply chains have to
endure to get goods and
services from point of origin to
their intended destination.

Hybrid Threats and
Supply Chain Safety
Management
▶ In the last 2-3 years, we have witnessed
series of actors or supply chain
adversaries that have simultaneously and
adaptively employed a fused mix of both
regular and irregular threats to disrupt
global, regional and national supply chains
knowingly and unknowingly. Cyberattack
on Maersk which was estimated to cost the
company as much $300 million, Qatar
blockade due to alleged terrorism support,
Brexit, increased ISIS attacks, increased
disputes in international law and
governance, challenge to globalization in
the rise of populism ideology, increase in
maritime disputes, threat to free trade,
NAFTA in limbo, migration issue in Europe
and series of political and economic
uncertainties. All of this mention are just
some miscellany of already existing threats
and new irregular/unconventional threats
that reflect significant impact on movement
of goods and services globally.

Hybrid Threats and
Supply Chain Safety
Management
▶ The rise in hybrid threats, shows that
supply chain risk management
framework for all organizations must be
continuously redefined to meet the ever
changing and dynamic vulnerabilities
and threats that works against it daily. It
is one thing for supply chain to build
resiliency in order to efficiently aid the
absorption of some of these threats
which may be inevitable, and it is
another thing to fight against it.
Any supply chain that wants to compete
in the future must have a chain that is
resilient and that can attack some of
these threats as being defensive is not
sufficient to subdue some of these
threats. Proliferation of advanced
technologies and supply chain reliability
are high risk areas that are prone to
attacks as we move into the supply

Hybrid Threats and
Supply Chain Safety
Management
▶ The future of supply chain, shows
heavy reliance on digital footprint and
cyber technologies and this will be areas
of interest for different supply chain
adversaries whoever they may be.
Organizations vulnerabilities are being
exploited daily and most organizations
are not equipped to deal with the
aftermath. An attack on an organization
has a direct impact on the product and
services value as well as its supply
chain. Globalization has facilitated the
long supply chain we experience today
and the longer the chain, the more
complex it is and the more susceptible it
becomes. If product A is manufactured
in Country X for consumption in Country
B, Country Y is not friendly with Country
B but friendly with Country X. Don’t be
surprised if you find your supply chain
be attacked by Country Y.

Hybrid Threats and
Supply Chain Safety
Management
▶ Since the inception of supply chain
management into the business world,
the modus operandi has been to take
defensive tactics or modes of operation
in aligning themselves within
organizations that address supply chain
risk management. This defensive
operating mind set can be attributed to
how supply chain management came to
being in the business world. A lot of
organizations still do not see supply
chain management as a functional part
of an organization. Today, we are finally
seeing C level positions in a lot of
organizations who address supply chain
management as a core functional part of
its organization. There are still a lot of
organizations out there who are still
lumping supply chain management with
other functional areas within the
organization.

Hybrid Threats and
Supply Chain Safety
Management
▶ It is this history of slow integration and
lack of recognition of supply chain
management function within an organization
that has hampered the ability of supply chain
risk managers to mitigate future threats. One
of the main defensive tactics of supply chain
management should be in its reliance on
other functional areas of the organization
before acting. A lot of supply chain systems
are reactionary in nature and with that,
defensive mode of operation is the only
feasible way to operate. It will be extremely
difficult to have an offensive mindset in a
reactionary mode of operation.
The threats to the future of supply chain can
only be challenged with combo of offensive
and defensive approaches. Some
organizations are already on the defensive
and offensive mode of operation while some
don’t see the reason to be. This operational
mindset will determine the competitiveness
of organizations in the future.

Hybrid Threats and
Supply Chain Safety
Management
▶ We should ask ourselves this “what
does it mean to be offensive oriented in
your supply chain management?” the
answer is simple really; an offensive
approach in the supply chain
management context is always looking
for ways to position an organization
through supply chain management to
project power; they do this by always
looking for ways to be innovative and
counter any perceive weak point before
being exploited. Every supply chain
has a weak link, ability to protect and
defend the weak link is the difference
maker. An offensive approach will not
be reliant on other core business
functions within the organization and
most importantly, an offensive
approach seeks out ways to
understand and approach challenges

Hybrid Threats and
Supply Chain Safety
Management
▶ The future of supply chain is dense on cyber
technology and with that comes hybrid threats
and challenges which cannot be combated with
todays mitigating strategies. As the population
increases around the world, despite the
populism movement and its protectionist ideas, I
do not see how populism is set to impact the
future of supply chain rather than being an
irregular force. Supply Chain of services and
products will become more complex and human
wants more insatiable, and that is why the need
for supply chain risk managers to be more
proactive and be offensive oriented in their
approach is now.
Recenlty, we learnt that 57 million Uber drivers
and riders information were hacked last year
and this is just of the few reported hacks that
affected related consumers. The traditional
supplier mapping against an overlay of geo-
cultural/political landscapes to determine
propensity of traditional supply chain threats
due to historic events will not be enough to
position any supply chain to challenge any
dynamic hybrid threats that would spring up in

Hybrid Threats and
Supply Chain Safety
Management
▶ Risk assessment and risk management for
hybrid threats are not same as the traditional
threats we have faced before. These
unprecedented mixtures of non-state actors in
terms of threats to the supply chain will continue
to increase in the future, so long as the increase
in demographic shifts continues thereby
encouraging more reliance on resource scarcity.
With these new changes in what is expected of
supply chain of the future in respect to hybrid
threats, supply chain professionals must equip
themselves with additional set of skills to be
able to drive value in making their supply chains
ready for the future and in a bid to further build
and strengthen supply chain resiliency. Supply
Chain professionals are encouraged to seek
new knowledge in areas of economics and
trade, national and international policies, data
mining and data analytics, digital supply chains,
programming and coding to a large extent and
most importantly having a deep understanding
of their own geo-political landscape how it
affects their suppliers and vice versa.

Hybrid Threats and
Supply Chain Safety
Management
▶ As the future of supply chain is set to
embrace the use of block-chain
technology, internet of things, machine
learning and all its derivatives, the question
we should be prepared to answer are,
“How are different organization getting their
supply chain ready for the different
vulnerabilities that comes with these new
technologies?, Are proper risk assessment
done to gauge the threat level associated
with supply chain future?, Are the supply
chain professionals within the
organizations equipped to face challenges
that comes with dealing with supply chain
of the future?, Are the risks worth the
effort?, What type of risks are
organizations willing to tackle offensively?,
Is the current supply chain resilient enough
to be defensive?, What is the cost of
allowing some of these threats to fall
through?” These and many other questions
should be raised as organizations prepare

Hybrid Threats and
Supply Chain Safety
Management
▶ There is no template or
cookie cutter approach to
designing a resilient supply
chain as every organization is
different. A high-risk threat to
Company A might be extremely
low risk threat to that of
Company B. Asking the right
questions and equipping
professionals with necessary
tools to aid the identification,
and designing of a supply chain
that fully understands and takes
into account the dynamic
environment with the best
interest of all its stakeholders at
heart.

Hybrid Threats and
Supply Chain Safety
Management
▶ In summary, hybrid threats
introduce a complex and multi-
dimensional security challenge,
while supply chain safety
management addresses the
need to secure critical
processes and systems against
a range of risks, including hybrid
threats. Given the interplay
between these two concepts,
organizations must consider
both when developing
comprehensive security and risk
management strategies.

Political Environment
as a Factor of Risk
▶ Political risk is the possibility that your
business could suffer because of
instability or political changes in a
country: conflicts and unrest, changes in
regime or government, changes in
international policies or relations
between countries, as well as changes
that occur in a country's policies,
business laws or investment regulations.
Other influential factors contributing to
political risk include any other situation
which may have an influence on a
country’s economy, such as commodity
price volatility, liquidity crises, and
sectoral downturns. Think of conflicts
across the globe, confiscation of assets
by local governments, and disputes over
natural resources among nations. These
may sound like unique political risks to
international business, but they can still
affect your local business, and you may
not see them coming.

as a Factor of Risk
▶ There are many kinds of
political risks that can impact
business: potential political
and economic instability,
labor problems, local product
safety, and environmental
laws. Key types of political
risk include war, terrorism,
and civil unrest. Unilateral
decision made by a state-
owned entity; geopolitical
decisions made by
governments, sanctions, and
jurisdictional risk.

as a Factor of Risk
▶ War, terrorism, and civil
unrest:
Some geopolitical risks result
from war, terrorism, and civil
unrest – a kind of political risk
map. “Look at what happened
during the Arab Spring in 2011
or what is happening in Ukraine,
in reference to the Russian
invasion of its neighbor.
“Political unrest in Ukraine
creates a very volatile
environment for companies with
interests in the region. They
faced the potential for damage
to assets through political
violence and possible broader

as a Factor of Risk
▶ Unilateral decision made by
a state-owned entity:
Another typical political situation
is a unilateral decision made by
a state-owned entity to
unilaterally terminate a contract
signed with a foreign supplier in
retaliation for an unfriendly
decision made by the
government of that supplier.

as a Factor of Risk
▶ Geopolitical decisions made
by governments:
On a less violent but still disruptive
geopolitical note, there are a variety
of geopolitical decisions
governments make at all levels that
can create political risk and affect
individual businesses: foreign
trade policies, tariffs, legal and
regulatory constraints, tax
regulations and currency
controls. “The embargo of Qatar by
its neighbors and the commercial
tensions between the US, China,
and Russia are also examples of
what political risk is for business,”.
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as a Factor of Risk
▶ Sanctions:
Sanctions are another political
risk in international business.
“Typically, we expect our
insured to comply with
international laws, so were they
to breach a sanction, that would
not be covered,”. “And on top of
that, if an insurer were to pay
out on a sanction contract, the
insurer would also be exposed
to those international sanctions.”
This Photo by Unknown Author is licensed under CC BY-NC

as a Factor of Risk
▶ Jurisdictional risk:
Jurisdictional risk is also a major
political risk in international
business, whether your
company is an SME looking to
expand or a global multi-billion-
dollar company. “Jurisdiction”
refers to the laws that will
govern the agreement you
sign with your partner. When
that partner is in another
country, difficulties can arise
should the terms of the contract
begin to unravel.

as a Factor of Risk
For instance, an American company
contracting with an African company
under local law would not be exposed to
the same legal framework as it would
under US law or if the contract is subject
to international arbitration for the
resolution of disputes between the
parties. “If you chose the local law, you
could be exposed to unexpected
changes in the local law regulation or
difficulty to enforce a decision made by
a local tribunal,”. “The choice of the law
governing the commercial contract is
often the responsibility of the insured
and is not an insurable risk as such.
However, it is worth mentioning that
non-respect of an international
arbitration award can be included as a
cause of loss, and therefore could be
covered under certain political risk

as a Factor of Risk
Having the knowledge of how
to deal with the complexity of
the local legal environment
can make a big difference in
your ability to withstand and
manage political risks.
International risk insurers such
as Allianz Trade have people on
the ground in more than 40
countries dealing with political
risks of all types: check out
our country risk ratings.
This Photo by Unknown Author is licensed under CC BY-ND

Political risk examples
▶ From sanctions to exchange controls
and terrorism to civil forfeiture, doing
business across international borders
comes with a whole new set of risks.
However, when these risks are properly
managed, firms can take advantage of a
new world of opportunities.
Import/Export issues:
In today’s globalized economy, competition
between countries and alliances can be
intense. Sometimes, businesses become
caught in the political crossfire.
This is especially true for businesses that
rely on imports, export and reexports as
part of their core operations. If sanctions or
other restrictive measures are imposed on
these activities, key supply chains may be
disrupted, and saleable goods may lose
value. In the most extreme cases, entire
enterprises can grind to a halt. A
comprehensive insurance policy can help
firms manage the inherent risks of

▶ Restriction on currency exchange
or transfer:
International monetary policy can have a
direct impact on US businesses.
Many countries with developing or
transitional economies use foreign
exchange controls in an attempt to limit
speculation against their currencies.
These countries are known as “Article
14” countries and include major global
players like China, India and South
Africa.
In certain circumstances, exchange
controls can prevent firms from remitting
proceeds from overseas operations
back to the US. That can impede cash
flow and threaten profitability. Political
risk insurance can enable affected
companies to restore shareholder
dividends, loan payments and other
essential payables.

▶ Political unrest and forced exit:
From mineral resources to human talent,
there are numerous reasons that US
businesses may expand into developing
markets. However, high-growth
opportunities often come with higher
risks of political conflict, instability and
violence.
Because these threats are unpredictable
and complex, standalone insurance
policies may not address all the ways
that operations could be affected. For
example, a commercial terrorism rider
might cover damaged assets, but it
might not cover loss of income if the
business must abandon those assets
amid danger. Political risk insurance is
designed to provide a broader scope of
protection for US companies operating
in emerging markets.

▶ Expropriation & discrimination:
At times, foreign governments may act
to seize the assets of US companies
operating within its borders. This is
known as direct expropriation and is
generally allowed under international law
if the seizure is for public benefit and the
firm is fairly compensated. But
sometimes, the compensation isn’t fair –
or it isn’t provided at all.
In other cases, businesses can face
indirect expropriation (a.k.a. regulatory
taking), where they retain the title to
their assets but are deprived of the
revenues they generate. The right
insurance policy can help US firms to
mitigate against both types of
expropriation.

How political risk can
affect your business
▶ What has changed in the past 25
years is that we are living in a more
connected world today. On the upside,
that means business is easier to
conduct on a global scale. Almost
everybody now has the ability to reach
out to emerging countries or to conclude
a contract and secure a sale in a foreign
country.
On the downside, this means that when
something goes wrong in one part of
the world, you can feel the impact
halfway around the globe – directly, if
you are dealing with the country in
question, or indirectly because of your
diverse supply chain. Remember when
the 20,000-ton container ship “Ever
Given” got stuck in the Suez Canal in
March 2021, shutting down international
trade for a week?

How political risk can
affect your business
▶ Another good example is when your own
government decides to ban sending people on
the ground to the country where you are
executing your contract. You would have to
stop the performance of your contract and you
would be exposed to additional expenses and
not be able to keep on performing or to keep
invoicing and receiving payment from the
customer in that specific country. This ban
would clearly translate into a loss for the
contractor.
As a last illustration, let’s take a change of law
or regulation that is super-selective and
targets only foreign companies. “That could be
seen as a soft discriminatory measure and
could be covered as a political risk,” says
Pierre. “But only if it’s a discriminatory
measure. Any governmental decision that
would impact all the companies located in a
country is not captured by a political risk
insurance policy. These are risks that all
business owners are facing when running a
business.”
Political risk management is essential in these

Political Risk
Management
▶ Some risks may be worth
taking for exposure to new
markets at opportune moments.
But it is always important to
keep your eyes and ears open
because political risks in
international business aren't
always well-identified.
Sometimes the risks may be just
rumors – events that one could
deem as not material with little
or no substance behind them.

Political Risk
Management
▶ Some of the early signs of political risk are
political, economic, and social instability:
● The political situation in the country:
how is the country behaving with its neighbors ?
You want to be prepared if there’s an escalation
of tensions or a war.
● The economic conditions: what are the
macroeconomic imbalances? How stable is the
economy? What is the ability of the country to
honor its payment obligations or debt over the
period of your project?
● The social conditions: is youth
unemployment or underemployment high (think:
Arab Spring, Sudan, Algeria etc.)? Are social
tensions erupting into violence? Riots can also
impact trade transactions or the performance of
commercial contracts. For example, there is a
strong correlation in countries whose economies
are heavily dependent on natural resources such
as oil and gas. You know that in these countries if
the price goes below a certain threshold, there
are going to be fewer resources to finance social
programs and that can lead to some social
instability or even the inability to honor debt
obligations.

as a Factor of Risk
▶ Political instability is the propensity
for regime or government change,
political upheaval, or violence in
society, or instability and uncertainty
in government policy, such as
regulatory, tax, property, or human
rights law. Any political shift involving
one or more of the aforementioned
triggers has the potential to cause
concern at a local level as well as
create major global supply chain
turmoil.
Political instability can affect global
supply chains with varying degrees of
damage to organizations and the
economy. The shift to leaner, more
efficient, last-minute global sourcing
strategies means delivery delays and
re-routed resources when political
unrest occurs. Organizations must
proactively prepare for adverse

as a Factor of Risk
▶ For example, recent political events in
North Africa, the Middle East and Ukraine
threaten global supply chains and cause
concern among organizations that have
any portion of their supply chain in those
areas. Other recent developments
reflecting the varying effects of political
instability include:
• Companies with operations or suppliers
in Crimea, Ukraine, have reevaluated
their current circumstances and, in
some cases, initialized emergency
plans due to strong political unrest.
• Nestlé with 4,500 employees and three
factories in Ukraine on alert.
• Astras, a Swiss logistics provider in
Ukraine, reported a 20% employee
turnover rate recently.
• Government assistance to farmers in
Ukraine has nearly disappeared.
• Although there are 620 German
companies in Ukraine that employ more
than 300,000, Deutsche Post has
stopped package delivery to that area.

as a Factor of Risk
▶ Clearly, continued unrest in
Ukraine poses a global sourcing
threat that senior leaders must
take seriously. Organizations
also need to consider supplier
relationships two or three levels
deep. If any of those partners
have ties to the unstable region,
a reverberation can be felt at
every link in the chain. The
complexity and trickle-down
effect of this issue can make it
difficult to address, but its
impact is undeniable.

Internal versus
External Supply Chain
Risks: A Risk
Disclosure Analysis
▶ Here's a breakdown of
internal and external supply
chain risks in the context of risk
disclosure analysis:

Internal versus
Risks: A Risk
Disclosure Analysis
▶ Internal Supply Chain Risks: Internal supply
chain risks stem from factors within a company's
control. These risks may include:
1.Operational Inefficiencies: Poor inventory
management, production delays, or lack of
coordination between departments can disrupt
the supply chain and lead to potential disruptions.
2.Quality Control Issues: If a company's
products or components fail to meet quality
standards, it can lead to recalls, customer
dissatisfaction, and financial losses.
3.Labor Disputes: Strikes, labor shortages, or
issues related to employee working conditions
can disrupt production and distribution.
4.Technology Failures: Technical glitches,
cyberattacks, or data breaches can disrupt the
supply chain and compromise sensitive
information.
5.Capacity Constraints: If a company's facilities
are unable to meet demand due to capacity
limitations, it can result in delays and lost sales
opportunities.
6.Financial Problems: Financial instability,

Internal versus
Risks: A Risk
Disclosure Analysis
▶ External Supply Chain Risks: External supply
chain risks are often beyond a company's direct
control and can be caused by factors in the broader
economic, political, and environmental landscape.
These risks may include:
1.Supplier Issues: Disruptions in the supply chain
due to supplier bankruptcies, production halts, or
shipping delays can impact a company's ability to
produce goods.
2.Geopolitical Factors: Political instability, trade
disputes, tariffs, and sanctions can disrupt
international supply chains and create
uncertainties.
3.Natural Disasters: Earthquakes, hurricanes,
floods, and other natural disasters can disrupt
transportation, production facilities, and distribution
networks.
4.Global Health Crises: Pandemics or health-
related events, as demonstrated by COVID-19, can
severely impact supply chains due to lockdowns,
labor shortages, and logistic challenges.
5.Currency Fluctuations: Changes in currency
values can affect the cost of imported materials and
components, potentially impacting profitability.
6.Environmental Regulations: Stricter
environmental regulations can require changes to

Internal versus
Risks: A Risk
Disclosure Analysis
▶ Risk Disclosure Analysis: A
risk disclosure analysis involves
examining a company's financial
and non-financial reports to
identify how it communicates
these supply chain risks to
stakeholders. This analysis
helps investors and other
stakeholders understand the
potential impact of these risks
on the company's operations
and financial performance.

Internal versus
Risks: A Risk
Disclosure Analysis
▶ Key points to consider in the analysis
include:
1.Transparency: Evaluate the clarity and
depth of the company's disclosures
regarding supply chain risks. Does the
company provide sufficient information to
understand the nature and potential
consequences of these risks?
2.Quantification: Does the company
quantify the potential financial impact of
supply chain risks? This can help
stakeholders assess the severity of the
risks.
3.Mitigation Strategies: Analyze whether
the company outlines strategies it has in
place to mitigate or manage these risks.
This can indicate the company's proactive
approach to risk management.

Internal versus
Risks: A Risk
Disclosure Analysis
▶ Key points to consider in the analysis
include:
4. Scenario Analysis: Companies
may use scenario analysis to
demonstrate how different supply
chain risk scenarios could impact
their operations and financials.
5. Timeliness: Assess whether the
company provides up-to-date
information on recent events that
may impact its supply chain.
6. Comparison: Compare the
company's risk disclosures with
industry peers to gauge the
company's relative exposure and
risk management practices.

Internal versus
Risks: A Risk
Disclosure Analysis
▶ By conducting a
comprehensive risk disclosure
analysis, investors, analysts,
and stakeholders can better
understand a company's supply
chain risks, its preparedness to
manage these risks, and its
potential resilience in the face of
challenges.

The Secure Process
Chain in Aviation
Security
▶ While the COVID-19
pandemic remains at the
forefront of aviation security
managers' concerns, traditional
security issues such as
terrorism and smuggling
continue to merit attention and
mitigation. Unsecured or
improperly screened cargo can
be a prime target for bad actors
attempting to harm an aircraft in
flight. It only takes the addition
of one unauthorized piece of
material into a shipment to have
potentially devastating
consequences for an aircraft
and its crew.

The Secure Process
Chain in Aviation
Security
▶ One of the most noteworthy
examples of this occurred on 29
October 2010, when two explosive
devices were discovered aboard two
different cargo aircraft en route from
Sanaa, Yemen to Chicago, United
States while conducting stopovers at
airports in the United Kingdom and
the United Arab Emirates. The
devices were discovered inside two
printers and contained explosives of
military-grade quality which would
have completely destroyed the aircraft
if detonated. Both printers passed
through Yemen's cargo inspection
regimen. This incident identified the
continued vulnerability of air cargo to
terrorist activities. In response,
aviation security authorities
introduced major overhauls of cargo

The Secure Process
Chain in Aviation
Security
▶ Some of the principal risk
mitigation techniques in air
cargo today are screening
cargo, the protection of cargo
from the time of screening, and
the establishment of secure
supply chains. These are all
closely tied to one another, as
one major way secure supply
chains reduce cost and improve
efficiency is by reducing the
number of times cargo must be
screened.

The Secure Process
Chain in Aviation
Security
▶ A few key points relevant to air cargo
operators:
Thorough Screening:
Air cargo operators are obligated to select the
most appropriate screening method in
compliance with their National Civil Aviation
Authority, taking into account the unique
characteristics of the cargo being screened.
Available methods include:
• Manual search – trained personnel
manually inspect the exterior and interior
of the cargo.
• X-ray and neutron scanners – stationary or
mobile devices fire high energy particles
into cargo containers to determine the
shape and consistency of the cargo within.
• Explosive trace and metal detection –
high-sensitivity devices scan cargo for
chemical traces or unusual metal
components.
• Explosive and narcotics detection canines

The Secure Process
Chain in Aviation
Security
▶ Secure Supply Chains:
A secure chain from known suppliers to
regulated agents to aviation operator
substantially lowers costs while increasing
security standards. Key aspects of a secure
supply chain include:
• Known suppliers are registered with aviation
security authorities and are verified to have
security procedures of a sufficiently
compliant standard that further screening is
unnecessary. Known suppliers are typically
manufacturers or producers.
• Regulated agents are similarly registered
with aviation security authorities and are
verified to both have security procedures of
an acceptable standard and the ability and
equipment to properly screen and protect
cargo. Regulated agents are typically freight
forwarders or warehouse logistics.
• Aviation operators can also function as
regulated agents for a variety of reasons
that include screening redundancies or the
ability to internally screen cargo from

The Secure Process
Chain in Aviation
Security
▶ Operators should take into account
the varying ability and desire to
enforce cargo security requirements
in accordance with their Aircraft
Operator Security Programme and
the National Civil Aviation Security
Programme requirements, and in line
with their risk assessment.
For example, locations with less
developed airport infrastructure may
not have access to advanced
screening technology.
Poor training and corruption may
hinder proper scanning processes.
More so, host States' National Civil
Aviation requirements may not align
with operators' cargo security
requirements.

The Secure Process
Chain in Aviation
Security
▶ On the opposite end of the
spectrum, some countries may have
significantly more robust procedures
in place. For example, the United
States' Air Cargo Advanced Screen
(ACAS) program - a pilot of which
went into effect following the Yemen
incident and was made permanent on
June 2018 – requires the advanced
submission of information regarding
any air cargo being shipped from a
foreign location. Other states require
100% screening of all cargo, even if
coming from a secure environment.
Operators should be fully aware of
any limitations or enhanced
restrictions at their destination so that
they may shape their own planning
process accordingly.

The Secure Process
Chain in Aviation
Security
▶ With air cargo dominating the aviation
operations landscape due to the COVID-
19 pandemic, hostile actors may
increasingly single out air cargo assets
as targets of opportunity. Operators
significantly expanding air cargo
operations, or who are entering the
market for the first time, should
familiarize themselves with global air
cargo regulations and risk mitigation
techniques.
It is imperative that air cargo operators
maintain appropriate cargo security
standards the same way they would for
their aircraft and crew members.
Experienced aviation security analysts,
like those at MedAire, provide operators
un-biased, third-party advice and
assistance on a global level.

Protection of Buildings
▶ Protecting the supply
chain for buildings involves
ensuring the security and
integrity of materials,
components, and processes
involved in construction and
maintenance. Given the
complexity of the
construction industry, which
involves various
stakeholders and stages,
securing the supply chain is
crucial to prevent
disruptions, theft, fraud, and
other risks that can
compromise the quality and
safety of buildings.

Protection of Buildings
▶ Protecting the supply
chain for buildings requires a
holistic approach that
considers the entire lifecycle
of a building, from design
and materials procurement to
construction, maintenance,
and eventual renovation or
demolition. By implementing
stringent security measures,
fostering collaboration, and
adopting advanced
technologies, stakeholders
can minimize risks and
ensure the longevity, safety,
and value of constructed
buildings.

Risk Response
Measures for the
Management of Theft
Risk in Road Freight
Transport Chains
▶ Managing the theft risk in
road freight transport chains
involves a combination of
proactive strategies and
response measures to minimize
the likelihood of theft and
mitigate its potential impact.

Risk Response
Measures for the
Management of Theft
Transport Chains
▶ Here are several risk response measures that can be
implemented to address theft risk in road freight transport
chains:
1.Route Planning and Monitoring:
• Choose routes that are known to be safer and
well-monitored.
• Use GPS tracking and real-time monitoring
systems to track the location of vehicles and
cargo at all times.
2.Secure Parking and Rest Stops:
• Encourage drivers to use secure parking areas
and rest stops equipped with surveillance
cameras and proper lighting.
• Avoid parking in remote or high-risk areas.
3.Secure Packaging and Sealing:
• Use tamper-evident seals and secure packaging
for cargo to deter theft and provide visible
evidence of tampering.
4.Driver Training and Awareness:
• Train drivers to be vigilant, recognize suspicious
behavior, and follow security protocols.
• Educate them about common theft tactics and
preventive measures.
5.Collaboration with Law Enforcement:
• Establish partnerships with law enforcement
agencies to report incidents and gather
intelligence.

Risk Response
Measures for the
Management of Theft
Transport Chains
implemented to address theft risk in road freight transport
chains:
6. Communication and Documentation:
• Maintain clear and accurate documentation of
cargo contents, shipping details, and delivery
times.
• Ensure effective communication between
stakeholders to reduce the risk of
misunderstandings or unauthorized changes.
7.Security Technology:
• Implement advanced security technologies such
as electronic locks, immobilization systems, and
alarms.
• Use geofencing to trigger alerts when vehicles
deviate from planned routes.
8.Insurance Coverage:
• Obtain comprehensive insurance coverage that
includes theft and cargo damage to mitigate
financial losses in case of theft.
9.Emergency Response Planning:
• Develop protocols for responding to theft
incidents, including reporting procedures and
contact information for relevant parties.
• Train employees in emergency response actions.
10.Background Checks and Vetting:
• Screen and vet employees, contractors, and

Risk Response
Measures for the
Management of Theft
Transport Chains
implemented to address theft risk in road freight transport chains:
11. Supply Chain Visibility:
• Establish transparency in the supply chain through
collaboration with suppliers and partners.
• Share information on cargo movements and
expected arrival times to ensure accountability.
12.Regular Risk Assessment:
• Conduct regular assessments of theft risks along
the transport chain to identify vulnerabilities and
areas for improvement.
• Adjust security measures based on the evolving
threat landscape.
13.Incident Reporting and Analysis:
• Report all theft incidents promptly to gather data
and identify patterns for informed decision-making.
• Analyze incidents to determine root causes and
implement preventive measures.
14.Stakeholder Collaboration:
• Collaborate with industry associations, regulatory
bodies, and security experts to share best practices
and stay updated on the latest security trends.
15.Crisis Communication Plan:
• Develop a communication plan to notify customers
and stakeholders in case of theft incidents, ensuring
transparency and maintaining relationships.

Risk Response
Measures for the
Management of Theft
Transport Chains
▶ Effective management of theft
risk in road freight transport
chains requires a
comprehensive and multi-
layered approach that involves
the collaboration of all
stakeholders, including transport
companies, drivers, shippers,
law enforcement agencies, and
technology providers. By
integrating preventive measures
and response strategies, the risk
of theft can be minimized, and
the overall security of the supply
chain can be enhanced.

Securing the Supply
Chain: A Focus on
Transportation
▶ In today’s globalized
economy, supply chain security
has become a critical issue for
businesses of all sizes. With the
rise of e-commerce and just-in-
time delivery, companies are
increasingly reliant on complex
supply chains that span multiple
countries and involve numerous
suppliers, vendors, and logistics
providers. As a result, the
security of the supply chain has
become a major concern for
businesses, governments, and
consumers alike. We will focus
on transportation security; one
of the most critical elements of

Securing the Supply
Chain: A Focus on
Transportation
▶ Supply chain security refers to the
measures that businesses take to
protect their supply chains from theft,
damage, and disruption. These
measures can include everything
from physical security measures,
such as locks and alarms, to more
sophisticated technologies such as
GPS tracking, biometric scanning,
and blockchain-based tracking
systems.
At its core, supply chain security is
about ensuring that goods are
delivered safely, securely, and on-
time. This requires a holistic
approach that takes into account the
entire supply chain, from raw
materials to finished products. It also
requires collaboration between all

Why It Is Important
▶ Supply chain security is
important for several reasons. First,
it helps businesses protect their
assets and avoid financial losses.
This is particularly important for
companies that rely on high-value
goods or materials, such as
electronics, pharmaceuticals, and
precious metals. However, similar
concerns may also come into play
regarding goods that could be
targeted but are not typically
thought about as high-risk, to
include construction materials,
perishables, and automotive parts.
These types of products can be
expensive and in high demand,
making them attractive targets for
thieves. Additionally, industrial
equipment, such as generators,
tools, and machinery can also be
targeted due to their high value and

Why It Is Important
▶ Second, supply chain security helps to
ensure that goods are delivered to
customers on time and in good condition in
several ways. This begins by implementing
measures to prevent theft or damage to
goods during shipping and handling, which
can include securing cargo in-transit,
monitoring the supply chain with
technology, and conducting quality control
checks at various stages. Supply chain
security also helps businesses identify
potential risks and vulnerabilities in the
supply chain and develop appropriate
responses to minimize disruptions. This
proactive approach helps to ensure the
goods reach customers on time and in
good condition, even in the face of
unexpected events.
Ultimately, ensuring timely, intact delivery
of goods is critical for businesses operating
in competitive markets, as it can directly
impact sales and brand reputation. By
prioritizing supply chain security,
businesses can build trust with their
customers, minimize losses due to damage

Why It Is Important
▶ Third, supply chain security is
important for national security.
The supply chain is a critical
infrastructure that underpins
many aspects of modern
society, including food,
medicine, and energy supplies.
Disruptions to the supply chain
can have far-reaching
consequences, including
economic damage, social
unrest, and even political
instability.

Transportation
Security
▶ Transportation security is one of
the most critical elements of supply
chain security. This is because
goods are often at their most
vulnerable when they are in-transit.
It is while goods are in-transit that
they face the greatest exposure to
theft, damage, or other forms of
disruption, such as natural
disasters, accidents, or even
terrorism.
Ensuring the security of goods in-
transit requires a range of
measures, including strategic
security measures, physical security
measures such as locks and seals,
as well as more sophisticated
technologies such as GPS tracking
and remote monitoring systems. It
also requires effective planning and

Transportation
Security
▶ Strategic Security Measures.
Transporting goods by truck is a
vital part of the supply chain
process. To ensure a shipment
arrives at its destination safely
and securely, it is crucial to
choose and manage the right
trucking routes and implement
strict driver/load safety protocols.
When selecting a trucking route,
factors that must be considered
would include the distance, time
of day, weather conditions, and
potential traffic congestion. It’s
also essential to check for any
road closures or construction
sites along the route that may
cause delays or detours during
the delivery process.

Transportation
Security
▶ To maintain driver and load safety, it is
crucial to implement strict protocols such as
regular vehicle inspections, fatigue
management, and load securement. Drivers
should be trained in defensive driving
techniques and should always wear seat
belts while driving. It is also important to
ensure that loads are correctly secured and
evenly distributed to prevent shifting during
transit, which may damage cargo or cause
other safety concerns.
Regular communication with drivers is also
essential to ensure they are aware of any
changes to the route, weather conditions, or
other potential hazards. Technology such as
GPS and real-time tracking can also be
used to monitor driver and load safety.
In summary, choosing and managing the
right trucking routes and implementing strict
driver and load safety protocols is critical to
ensuring the safe and secure transportation
of goods. By taking these steps, shippers
can minimize the risk of accidents, delays,
and damage to the shipment.

Transportation
Security
▶ Physical Security Measures. Physical
security measures are an essential part of
transportation security. They include
everything from locks and seals to secure
containers and warehouses. The goal of
these measures is to prevent unauthorized
access to goods, deter theft, and other forms
of criminal activity.
One of the most common physical security
measures used in transportation is the use
of locks and seals. These are typically used
to secure containers and trailers and can be
used to prevent unauthorized access to
goods. Seals can also be used to track the
movement of goods and detect any
tampering or attempted theft.
Another important physical security measure
involves the use of secure warehouses and
storage facilities. These facilities are
typically equipped with security systems
such as alarms and CCTV cameras to deter
theft and vandalism. They may also be
staffed by security personnel who can
monitor the facility and respond to any

Transportation
Security
▶ Technological Solutions. Technology
can also play a critical role in transportation
security. One of the most important
technological solutions used throughout the
supply chain is GPS tracking. This
technology allows shippers to track the
movement of goods in real-time by aligning
with existing innovative IoT hardware and
software solutions which can help to prevent
theft and other forms of disruption.
GPS tracking is also frequently used to
optimize logistics operations. By tracking the
movement of goods, shippers can effectively
identify bottlenecks and inefficiencies along
the supply chain, which can be addressed to
improve delivery times and reduce costs.
Another important technological solution is
remote monitoring. This involves the use of
sensors and other devices that may be
located on or in the tractor, trailer, pallet, or
inside the carton to monitor the condition of
goods in-transit, such as temperature,
humidity, and vibration. This can help to
prevent the damage of goods and to ensure

Transportation
Security
▶ Collaboration. Collaboration between
all stakeholders is crucial for
transportation security. This includes
shippers, carriers, and receivers, as well
as governments and law enforcement
agencies.
One of the most important forms of
collaboration is information sharing. By
sharing information about threats and
risks, stakeholders can work together to
identify potential security breaches and
take steps to prevent them. There are a
handful of information sharing
applications in the market that are
designed to prevent and recover cargo
theft.
Collaboration can also involve the sharing
of best practices and standards. For
example, the International Maritime
Organization has developed a range of
standards and guidelines for the secure
transportation of goods by sea, including

Bringing It All Together
▶ Transportation security is a
critical element of the overall
supply chain, playing a crucial
role in supporting the business
and the customer in several
ways. By taking a holistic
approach to supply chain
security, businesses can protect
their assets, ensure on-time
delivery of goods, and
contribute to national security. It
also ensures the safety and
security of passengers, crew,
and cargo, which is essential for
building trust and confidence
among customers. This, in turn,
helps to increase the demand
for air travel and boosts the
revenue of the airline industry.

Bringing It All Together
▶ Transportation security also helps
reduce the risk of theft, damage, or loss
of cargo, which can result in financial
losses for both the business and the
customer. By implementing effective
security measures, such as screening
procedures and surveillance systems,
transportation companies can minimize
the risk of such incidents and protect the
interests of their customers.
Moreover, transportation security helps
to ensure compliance with regulatory
requirements and international
standards, which is essential for
maintaining the reputation of the
business and building trust among
customers. By adhering to these
standards, transportation companies
demonstrate their commitment to
providing safe, secure, and reliable
services, which improves efficiency and
ultimately benefits both the business
and the customer.

Failure Management
Concept
▶ A further concept focusing on risk-
and uncertainty factors can be seen in
Failure Management. Failure
management, also known as failure
analysis or incident management, is
the process of identifying, analyzing,
and responding to failures or incidents
within a system or organization. This
process is crucial for maintaining the
reliability, safety, and efficiency of
systems across various domains such
as technology, engineering,
manufacturing, healthcare, and more.
Effective failure management is
essential for organizations to
minimize downtime, reduce costs,
ensure safety, and maintain customer
satisfaction. It requires a proactive
approach, strong communication,
collaboration across teams, and a

Access and Theft
Prevention in Cross-
Dock Warehouses
▶ Access and Theft Prevention in
Cross-Dock Warehouses: These
measures are twofold: to protect
against theft and unauthorized access
to packages, and to improve process-
security through quickly finding
erroneous shipments and detecting
insufficiently packed goods
Preventing access and theft in cross-
dock warehouses is crucial for
maintaining the security and integrity
of inventory and ensuring smooth
operations. By implementing a
combination of these measures,
cross-dock warehouses can enhance
security, deter theft, and minimize the
risk of unauthorized access, thereby
safeguarding valuable inventory and
maintaining operational efficiency.

Accessibility
▶ Accessibility is the protection of
information from unauthorized,
unanticipated or unintentional
modification. In the context of cross-
dock warehouses, accessibility
refers to the ease with which goods
can be received, processed, and
dispatched within the facility.
Accessibility is crucial for ensuring
efficient operations and timely
delivery of products to customers.
Overall, optimizing accessibility in
cross-dock warehouses involves
careful planning, efficient layout
design, proper utilization of
technology, and adherence to
safety and regulatory requirements.
By prioritizing accessibility,
warehouses can improve
operational efficiency, reduce lead
times, and enhance customer

AEO: Authorized Even
Operator
▶ The term "AEO" stands for
"Authorized Economic Operator." It's a
designation given to businesses
involved in the international supply
chain that have demonstrated a
commitment to complying with customs
regulations and security standards. The
concept of AEO is part of a global effort
to enhance security and facilitate trade
by recognizing trustworthy operators
within the supply chain.
Overall, AEO status is a valuable
designation for businesses involved in
international trade, as it can lead to
smoother customs processes, reduced
delays, and improved supply chain
efficiency. However, obtaining and
maintaining AEO status requires a
commitment to security, compliance,
and continuous improvement in supply
chain practices.

BASC
▶ BASC stands for Business
Alliance for Secure Commerce. It is
an international business coalition
created to promote secure trade
practices and combat the risks of
terrorism, smuggling, and other illicit
activities within the global supply
chain. BASC certification is
recognized by customs authorities
and facilitates trade by providing
assurance of security and
compliance with international
standards.
Overall, BASC plays a significant
role in promoting supply chain
security and facilitating international
trade by establishing common
standards, fostering collaboration,
and providing assurance to
stakeholders regarding the integrity

Cargo Theft
▶ Theft in air transportation refers
to the unlawful taking or removal
of property or goods from aircraft,
airports, or associated facilities. It
poses significant security and
safety risks to passengers, cargo,
airlines, airports, and other
stakeholders in the aviation
industry.
Overall, theft in air transportation
poses challenges to the security
and integrity of the aviation
industry, requiring a
comprehensive approach
involving proactive security
measures, regulatory compliance,
collaboration, and enforcement
efforts to safeguard passengers,
cargo, and assets.

Theoretical Approach
▶ By taking this feature into account,
theoretical approach can be captured
that help explaining, respectively
designing (specific facets of) a concept
for the management of risk and
uncertainty factors. A theoretical
approach to understanding theft in air
transportation could involve applying
various theoretical frameworks from
criminology, sociology, and
organizational studies to analyze the
phenomenon.
By applying these theoretical
perspectives, researchers can gain
insights into the underlying causes,
mechanisms, and contexts of theft in
air transportation, which can inform the
development of preventive strategies,
security measures, and organizational
interventions to mitigate the risk of theft
and promote the safety and security of
air transportation operations.

Concept of Adaptability
▶ The concept of adaptability refers
to the capacity of individuals,
organizations, or systems to adjust,
respond, and thrive in the face of
changing circumstances, challenges,
or environments. Adaptability is
essential for survival and success in
dynamic and unpredictable situations,
allowing entities to effectively cope
with uncertainty, innovation, and
adversity.
Overall, adaptability is a critical
capability for individuals,
organizations, and systems seeking
to thrive in today's rapidly changing
and uncertain world. By fostering
adaptability, entities can better
navigate complexity, embrace
change, and capitalize on
opportunities for growth and
innovation. Contaminated foodstuffs
or goods with production faults can

CSI: Container
Services International
▶ Container Services International
(CSI) is a term that can refer to
various companies or organizations
providing services related to
shipping containers and
containerized cargo. These services
may include container leasing,
sales, repair, transportation,
storage, and logistics management.
Overall, Container Services
International companies play a vital
role in facilitating global trade by
providing essential services and
infrastructure for the efficient and
secure transportation of
containerized cargo. They help
shippers, carriers, and logistics
providers optimize supply chain
operations, reduce costs, and

Digital Security
Measures
▶ Digital security measures refer to
techniques, practices, and technologies
employed to protect digital assets,
information, and systems from
unauthorized access, data breaches,
cyberattacks, and other security threats. In
today's digital age, where businesses and
individuals rely heavily on digital
technologies and data, implementing
robust digital security measures is crucial
to safeguarding sensitive information and
ensuring the integrity, confidentiality, and
availability of digital resources.
By implementing a combination of these
digital security measures and adopting a
holistic approach to cybersecurity,
organizations can enhance their resilience
to cyber threats, protect sensitive data, and
maintain the trust and confidence of their
customers, partners, and stakeholders in
an increasingly digital world. Digital
Security Measures: These are measures,
which serve to protect the information and
information systems used in the running of

Globalization of
Markets
▶ The globalization of markets refers to
the process by which businesses and
economies around the world become
increasingly interconnected and
interdependent through the exchange of
goods, services, capital, technology, and
information across national borders. This
phenomenon is driven by various factors,
including advancements in technology,
transportation, communication, and trade
liberalization policies.
Overall, the globalization of markets has
profound implications for businesses,
economies, and societies worldwide,
shaping patterns of trade, investment,
innovation, and cultural exchange on a
global scale. Embracing globalization can
enable businesses to capitalize on new
opportunities, drive economic growth, and
contribute to a more interconnected and
prosperous world. Due to the globalization
of markets and a surge in globe-spanning
supply chain operations, local catastrophes
have increasingly indirect global

Theft Distribution
Centers
▶ Distribution centers face various
risks of theft due to the large
volumes of inventory they handle
and their strategic importance in the
supply chain.
By implementing a combination of
physical security measures,
cybersecurity protocols, employee
training, supply chain risk
management practices, and
emergency preparedness
strategies, distribution centers can
mitigate the risk of theft and
safeguard their assets, operations,
and reputation. Regular monitoring,
assessment, and adaptation of
security measures are essential to
stay ahead of evolving threats and
vulnerabilities. Facilities like
distribution centers are at high risk

Organizational security
measures
▶ Organizational security measures
encompass a range of strategies,
policies, and practices implemented by
businesses to protect their assets,
information, operations, and personnel
from security threats. These measures
are designed to safeguard against
various risks, including theft, fraud,
cyberattacks, vandalism, terrorism, and
other security breaches.
By implementing a comprehensive set of
organizational security measures,
businesses can enhance their resilience
to security threats, protect their assets
and operations, and maintain the trust
and confidence of customers, partners,
and stakeholders. Regular risk
assessments, security audits, and
continuous improvement efforts are
essential to stay ahead of evolving
security risks and challenges.
Organizational security measures

Physical Security
Measures
▶ Physical security measures are
strategies and mechanisms put in place to
protect physical assets, facilities, and
personnel from unauthorized access, theft,
vandalism, or harm. These measures are
essential for maintaining the safety and
security of physical spaces and ensuring
the integrity of operations.
By implementing a combination of these
physical security measures and integrating
them into a comprehensive security
strategy, organizations can enhance the
protection of their assets, facilities, and
personnel, and mitigate the risk of security
breaches or incidents. Regular monitoring,
evaluation, and adaptation of physical
security measures are essential to address
emerging threats and maintain a safe and
secure environment. Physical Security
Measures: These measures cover the
physical protection of the fixed
infrastructure (e.g. buildings, warehouses)
and the mobile infrastructure (transport
vessels, e.g. containers) and should

Policy changes
▶ Policy changes in the supply chain refer
to modifications, adjustments, or updates
made to the rules, regulations, guidelines,
or procedures governing various aspects of
the supply chain operations. These policy
changes can be initiated by governments,
regulatory bodies, industry associations, or
individual organizations in response to
evolving market dynamics, technological
advancements, regulatory requirements, or
strategic priorities.
Policy changes in the supply chain can
have significant implications for
businesses, requiring them to adapt their
strategies, operations, and relationships
with supply chain partners to remain
compliant, competitive, and resilient in a
dynamic regulatory environment. Proactive
monitoring of policy developments,
stakeholder engagement, and strategic
planning are essential to navigate policy
changes effectively and seize opportunities
for innovation and growth in the supply
chain. Policy changes that might occur
over night in democratic political

Unsystematic Supply
Chain Risk
▶ Unsystematic supply chain risk,
also known as idiosyncratic risk,
refers to risks that are specific to
individual components, nodes, or
entities within a supply chain rather
than being systematic or systemic
across the entire supply chain. These
risks are often unique to suppliers,
customers, facilities, or geographic
regions and may arise from internal
factors, external events, or
operational inefficiencies.
By proactively identifying, assessing,
and managing unsystematic supply
chain risks, organizations can
enhance their resilience, mitigate
potential disruptions, and maintain
supply chain performance and
competitiveness. Risks external to the
supply chain that cannot be
influenced correspond to

Secure parking areas
▶ Secure parking areas, also
known as secure truck parking
facilities or truck stops, are
designated locations where
commercial vehicles, such as
trucks, trailers, and buses, can
park safely and securely for rest
breaks, overnight stays, or
temporary stops during long-
haul journeys. These facilities
are essential for ensuring the
safety and security of drivers,
protecting cargo, and preventing
theft, vandalism, or
unauthorized access to vehicles
and their contents. Secure
parking areas have a higher
number of security features in
place than non-secured parking
areas.

Security Cargo
Packaging
▶ Security cargo packaging refers to the
use of specialized materials, containers,
and techniques to protect cargo from
theft, tampering, damage, or
contamination during transportation and
storage. Security packaging is
particularly important for high-value or
sensitive goods, such as electronics,
pharmaceuticals, jewelry, and
confidential documents, as well as for
international shipments subject to
customs inspections and security
screenings.
By implementing effective security cargo
packaging solutions, businesses can
mitigate the risk of theft, tampering, and
damage to their valuable cargo, ensure
compliance with regulatory
requirements, and maintain the integrity
and security of supply chain operations.
Security can be increased by
appropriate cargo packaging or well

Crisis Management
▶ Crisis management is the process
of preparing for, responding to,
recovering from, and learning from
unexpected events or situations that
threaten to disrupt or harm an
organization's operations, reputation,
stakeholders, or assets. Crises can
take various forms, including natural
disasters, cybersecurity breaches,
product recalls, financial
emergencies, public relations crises,
or geopolitical events. Effective crisis
management involves proactive
planning, coordination,
communication, and decision-making
to minimize the impact of crises and
facilitate a swift and effective
response.
Some of the factors of Crisis
Management (CM) are: Ensuring
solvency, realizing minimum, and

Supply chain risk
management (SCRM)
▶ Supply chain risk management
(SCRM) is the process of
identifying, assessing, mitigating,
and monitoring risks throughout the
supply chain to ensure continuity,
resilience, and efficiency in
operations. SCRM involves
proactively managing risks
associated with suppliers, logistics,
operations, demand fluctuations,
regulatory compliance, geopolitical
events, natural disasters, and other
factors that could disrupt or impact
the supply chain.
Supply Chain Risk Management
(SCRM) is the most frequently
represented concept in the SCM-
literature. SCRM results from the
intersection of the Supply Chain

The Transported Asset
Protection Association
(TAPA)
▶ The Transported Asset Protection
Association (TAPA) is an industry
association focused on enhancing
security standards and practices within
the global supply chain and logistics
industry. Founded in 1997, TAPA is a
non-profit organization that collaborates
with businesses, law enforcement
agencies, government bodies, and other
stakeholders to address security
challenges and mitigate risks associated
with the transportation and storage of
goods.
Overall, the Transported Asset Protection
Association plays a vital role in promoting
supply chain security, protecting assets,
and safeguarding the integrity and
resilience of global supply chains.
Through its initiatives, standards, and
collaborative efforts, TAPA contributes to
reducing supply chain risks, enhancing

Sovereign duties
▶ Sovereign duties refer to the
responsibilities and obligations
that a sovereign state has
towards its citizens, territory, and
international community. These
duties are typically derived from
the state's sovereignty, which
grants it exclusive authority and
control over its territory,
government, and population.
Sovereign duties encompass a
wide range of functions and
activities that governments are
expected to perform to fulfill their
role as sovereign entities. In
modern democracies, sovereign
power rests with the people and is
exercised through representative
bodies such as Congress or
Parliament.

Sovereign duties
▶ Overall, sovereign duties
represent the core functions and
responsibilities of government in
ensuring the security, welfare,
and prosperity of the state and
its citizens. While the specific
duties and priorities of
governments may vary
depending on factors such as
political ideology, culture, and
historical context, the fulfillment
of sovereign duties is essential
for maintaining the legitimacy
and effectiveness of governance
in the modern world. The
business sector does not
support public security by
assuming originally sovereign
duties

Costs Of Theft
▶ The costs of theft can vary
widely depending on factors
such as the type of theft, the
value of stolen goods or
assets, the impact on
operations, and the
measures required for
recovery and prevention. The
costs of theft do not merely
consist of the value of the
stolen products. The costs
include much more like
investigation costs,
administrative costs, product
replacement, high insurance
premium, contractual penalty
payments, lost sales, lost
reputation, and lost

Terms and Conditions
▶ "Terms and conditions" refer to
the contractual provisions, rules,
policies, and guidelines that govern
the relationship between parties
entering into a transaction or
agreement. These terms and
conditions outline the rights,
responsibilities, obligations, and
limitations of each party and help
ensure clarity, transparency, and
mutual understanding of the terms
of the agreement. Terms and
conditions are commonly found in
various types of contracts,
agreements, terms of service, and
purchase agreements, both in
business-to-business (B2B) and
business-to-consumer (B2C)
transactions. The extent to which
an insurance company covers the
risk of theft depends on the terms

Problem Management
▶ Problem management is a
systematic approach to identifying,
analyzing, and resolving underlying
issues or recurring problems within
an organization's IT infrastructure,
systems, processes, or services.
The goal of problem management
is to minimize the impact of
incidents, prevent their recurrence,
and improve overall service quality
and reliability. Problem
management is an essential
component of IT service
management (ITSM) and is closely
aligned with incident management,
change management, and other
ITIL (IT Infrastructure Library)
processes. The focus of Problem
Management (PM) is on the type
of disruption called problems which
can be considered to be the

Infrastructure Risk
▶ Infrastructure risk refers to the
potential threats and vulnerabilities
that can impact the physical,
technological, and operational
components of critical
infrastructure systems, facilities,
and networks. These risks can
arise from a variety of sources,
including natural disasters,
technological failures,
cyberattacks, physical security
breaches, and human error.
Infrastructure risk management
involves identifying, assessing, and
mitigating these risks to ensure the
resilience, reliability, and continuity
of essential infrastructure services.
The infrastructure risk source
includes potential disruptions that
evolve from the infrastructure that
a firm maintains for its supply chain

Information Leakage
▶ Information leakage, also
known as data leakage or data
exfiltration, refers to the
unauthorized disclosure or
exposure of sensitive or
confidential information to
unauthorized individuals,
entities, or systems.
Information leakage can occur
through various channels and
methods, including human
error, technical vulnerabilities,
malicious attacks, or insider
threats. It poses significant
risks to organizations,
including financial losses,
reputational damage,
regulatory non-compliance,
and loss of intellectual
property. The issue of

The Logistics Sector
▶ The logistics sector
encompasses the planning,
implementation, and
management of the flow of
goods, services, and
information from point of origin
to point of consumption. It plays
a critical role in the global
economy by facilitating trade,
commerce, and supply chain
operations across various
industries and sectors. The
logistics sector encompasses a
wide range of activities,
services, and functions,
including transportation,
warehousing, inventory
management, distribution,
packaging, and logistics
technology. The logistics sector
is globally active and flexible

Traceability Concept
▶ Traceability is a concept that refers
to the ability to track and trace the
movement of products, components,
or ingredients throughout the supply
chain, from their origin to their final
destination. It involves capturing and
recording relevant information about
the production, processing,
distribution, and handling of goods at
each stage of the supply chain, and
making this information accessible for
verification, transparency, and
accountability purposes. Traceability
enables organizations to identify and
trace the flow of products or
materials, monitor quality and safety
standards, comply with regulatory
requirements, and respond effectively
to issues such as recalls,
contamination, or counterfeit
products. The objective of the
traceability concept is to facilitate the
identification and selection of
damaged goods within the supply
chain, and so to enable their

Vehicle-to-vehicle
(V2V) and vehicle-to-
infrastructure (V2I)
communications
▶ Vehicle-to-vehicle (V2V) and
vehicle-to-infrastructure (V2I)
communications are two key
components of connected vehicle
technology that enable vehicles to
communicate with each other and
with infrastructure elements such
as traffic signals, road signs, and
roadside units. These
communication systems use
wireless technologies to exchange
information in real-time, enhancing
safety, efficiency, and mobility in
transportation systems. Vehicle-to-
vehicle (V2V) and vehicle-to-
infrastructure (V2I) communications
are other scenarios of a wide
deployment of wireless
communication technologies that

WCO: World Carriers
Organization
▶ The term "WCO" typically refers to the
World Customs Organization, not the
World Carriers Organization. The World
Customs Organization is an
intergovernmental organization
headquartered in Brussels, Belgium, with a
mission to enhance customs cooperation
and facilitate international trade by
developing and promoting customs
standards, practices, and policies.
The World Customs Organization (WCO)
serves as a forum for customs
administrations from around the world to
exchange information, share best
practices, and collaborate on initiatives
aimed at streamlining customs procedures,
combating illicit trade, and promoting trade
facilitation and security. The organization
develops international customs standards
and guidelines, such as the Harmonized
System (HS) for the classification of
goods, the Revised Kyoto Convention for
the simplification and harmonization of
customs procedures, and the SAFE
Framework of Standards to secure and

Agency theory
▶ Agency theory is a principle
in economics and management
that explores the relationship
between principals (such as
shareholders or owners) and
agents (such as managers or
employees) who act on behalf
of the principals. The theory
addresses the potential conflicts
of interest that may arise
between principals and agents
when the interests of the two
parties diverge.
Agency Theory deals with
relationships between principals
and agents (i.e., actors who have
individual motivations) which also
exist in supply chains, and which
may cause (supply chain) risks.

Preventive Measures
▶ Preventive measures are
actions, strategies, or
interventions implemented to
reduce the likelihood or impact
of potential risks, threats, or
undesirable events. These
measures are designed to
identify, address, and mitigate
risks proactively before they
escalate into problems or
crises. Preventive measures are
essential in various contexts,
including business, healthcare,
cybersecurity, public safety, and
disaster management.
Preventive measures aim at
eliminating the source of risk and
are therefore addressed to the
probability of occurrence of a risk
factor.

Incident Management
(IM)
▶ Incident Management (IM) is a
systematic approach to identifying,
responding to, and resolving incidents
that disrupt or threaten to disrupt
normal operations within an
organization. Incidents can
encompass a wide range of events,
including technical malfunctions,
security breaches, natural disasters,
accidents, or any other unexpected
occurrences that impact business
processes, services, or assets. The
primary goal of incident management
is to minimize the impact of incidents
on the organization's operations,
customers, and stakeholders and
restore normal service levels as
quickly as possible. Incident
Management (IM) aims at rapidly
restoring normal operations, at
minimizing negative effects resulting
from incidents and at achieving the
agreed service levels.

Business Continuity
Management (BCM)
▶ Business Continuity
Management (BCM) is a holistic
approach to identifying potential
threats and risks to an
organization's operations and
developing strategies and plans to
ensure the continuity of essential
business functions and services in
the event of disruptions or
emergencies. BCM aims to
enhance organizational resilience,
minimize the impact of disruptions,
and facilitate timely recovery to
normal operations.
Business Continuity Management
(BCM) deals with the management
of risk and uncertainty factors and
which is less discussed from a
scientist’s perspective and more
from a practitioner’s perspective at

Uncertainty
Management (UM)
▶ Uncertainty Management (UM)
is a strategic approach used by
organizations to identify,
understand, and effectively
respond to uncertainty and
ambiguity in their operating
environments. It involves
developing proactive strategies,
processes, and capabilities to
navigate uncertainty, mitigate
risks, and seize opportunities
amidst changing conditions. UM
is particularly relevant in dynamic
and unpredictable business
environments where uncertainty
is inherent and impacts decision-
making, planning, and execution.
Uncertainty Management (UM)
focuses on the type of disruption
called uncertainty.

Reactive Measure
▶ Reactive measures are
actions or responses taken after
an event has occurred, often in
response to a problem, incident,
or crisis. Unlike preventive
measures, which aim to
anticipate and mitigate risks
before they occur, reactive
measures are implemented in
reaction to an event that has
already taken place. While
reactive measures may help
address immediate issues and
minimize the impact of an event,
they are typically less effective in
preventing or avoiding problems
altogether. Reactive measures
aim at minimizing the detrimental
impact resulting from a risk that
has occurred and are therefore
addressed to the significance of

Organizational
Measures
▶ Organizational measures refer
to strategies, policies, practices,
and structures implemented
within an organization to achieve
specific goals, enhance
performance, and ensure
effectiveness. These measures
encompass various aspects of
organizational management,
including leadership, governance,
culture, structure, processes, and
systems. Organizational
measures are designed to
optimize resources, improve
efficiency, mitigate risks, and
drive continuous improvement.
Organization measures primarily
concern the approach to the
subject of security, through
deployment of personnel and
material resources, and

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