Supply Chain Disruption: Managing the Risk and Enhancing Resilience
Supply chain disruptions not only create substantial financial losses, they can also severely impact other factors including market position, reputation, and investor confidence.
As we become more interconnected and new threats evolve, the complexity of supply chain risk management is increasing, and robust processes to identify and manage vulnerabilities are critical. The approach must be truly enterprise-wide, connecting risk and insurance professionals with senior directors in supply chain, procurement, treasury, strategy, and operations, around a common set of data and decision making.
Building visibility into the supply chain is the cornerstone of mitigating risk. Visibility must extend beyond the most important suppliers and their geographic location, to also include a keen understanding of suppliers’ capacity, utilisation levels and their dependency on other third parties.
It is critical to quantify the likely financial effects of losing a key supplier to guide decisions around investments in resilience and adequacy of insurance cover. A better understanding of the risks facing suppliers enables a more effective assessment of suppliers’ risk management measures and can help to inform contractual terms from a liability perspective.
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At the recent Aon Insights Series Pacific 2024, our masterclass Supply Chain Disruption: Managing the Risk and Enhancing Resilience explored how effective risk management, through effective business continuity planning and strategic insurance solutions, is essential for providing protection, competitive advantage and building resiliency into supply chains. Click here to view the presentation slides or watch the session recording below.
Talk with Us
If you would like to discuss how you can improve your supply chain resilience, please reach out to us:
Paul Koutouridis, Head of Consulting
paul.koutouridis@aon.com
Reference
[1] Aon’s 2023 Global Risk Management Survey
