An Integrated Approach to Managing Supply Chain Risk
By on March 11, 2010 4:27 PM
Yesterday Andrew Tait (of Core Risks) and I presented, via audio conference, to a group of life science companies on Supply Chain Risks and what an Integrated Approach to Managing Supply Chain Risk should look like. The session itself actually touched on a number of other issues such as some of the emerging issues, and potential starting points for supply chain risk management but the session looked at the cycle of risk management starting with risk identification and moving through the qualification/quantification stages to prioritisation, mitigation and transfer.
Click here to view the presentation
Supply chain integrity has never been a bigger or more complex challenge for today's global businesses. Increased pressure for improved financial performance, combined with the need to optimise assets and resources, has resulted in a growing reliance on out-sourcing and off-shoring,often to developing countries. But with the benefits of reduced costs comes the increased and more complex threat of supply chain interruption. Increasing numbers of company financial reports now make mention of supply chain risks as being one of the key business exposures - but many do not seem to have an integrated model to identify, quantify and manage risk.
Managing supply chain integrity is about acknowledging the connections from threat through to interruption. To properly do this, companies have to develop an integrated approach covering identification, quantification, mitigation, financing and acceptance of supply chain risk. Many companies fail to appraise the full extent of supply chain vulnerabilities and as a result are not totally confident that risks are managed within acceptable financial targets.
Andrew and I explained how an integrated model for the identification, treatment and acceptance of Risk can address these concerns. Finally we touched on the management of risk through contracts and how insurance should be considered as the end point of the risk management process plus some new approaches.
The audio presentation and slides can be found by clicking the link at the top of this blog post, please contact me and I'll be glad to discuss how we can help your company further.
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