The world continues to become smaller as globalization fueled by the Internet has made it far easier to drive commerce across geographies. The result is in an ever-expanding supply chain. It’s common knowledge that raw materials, components, and finished products are sourced from all over the world. This results in less control for an importer or manufacturer and subsequently more risk.
Risk managers may take for granted their complex supply chain until something catastrophic occurs. As was evidenced in the Kobe and Fukashima Japanese earthquakes, there was a widespread and sustained disruption in supplies across many industries. Therefore, the ability to recognize who makes up your supply chain ecosystem, map the level of criticality in terms of bottlenecks and supplier reliance, and implement appropriate business continuity controls is crucial.
Global economies, natural catastrophes, and climate change impacts have never strained business supply chain resiliency more. Businesses that recognize the ever growing threats to their supply chain, and seek ways to strengthen it, will better ensure a stable and healthy bottom line. Chubb Risk Engineering has the expertise to help you to identify your risks, understand the issues, and implement best practices.