For many companies, recognizing and addressing supply chain risk can seem like an impossible task. But a unified approach can chart a clearer course of action.
Key takeaways:
- Many companies’ approach to supply chain risk differs from department to department. But a more efficient and effective approach is possible.
- A single supply chain risk strategy helps unify every department under a common goal and identifies risk scenarios — and the actions needed to address them.
- Data and analytics can improve visibility and decision making when it comes to a single supply chain risk strategy.
Supply chain issues have been pushed to the top of the news agenda over the past few years. The Russia and Ukraine conflict has sparked a significant and long-term impact on the supply and cost of food across the world. Car manufacturers have taken measures to ensure that they can keep up with the demand for new cars despite an acute chip shortage. As companies triage these and other similar situations, they will inevitably expose themselves to risk.
While supply chain risk has become one of the most important issues for business leaders to tackle, it’s also often misunderstood. For companies to overcome these problems, they must first develop a unified and comprehensive understanding of their risk profile and appetite.
Richard Waterer, global risk consulting leader for Aon, discusses how companies can mitigate risk by formulating an understanding of their supply chain, leaning on data and analytics to avoid issues and setting long-term risk-management goals.
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