Never Break the Chain: Assessing and Managing Supply Chain Risk
Most organizations continue to devote insufficient thought and resources to the task of assessing and managing risk in their supply chains. This leaves them vulnerable to disruptions in their supply chain and even completely unaware of the various risks that are lurking there.
In today’s post, I’ll sketch out the process your organization’s business continuity (BC) office should follow to assess and mitigate supply chain risk.
Related on BCMMETRICS: You Have to Kick the Tires: Protecting Yourself Against Supply-Chain Catastrophes
Supply chain risk management is an area where there are still significant exposures and risks in business today. This has been a really difficult area for many BC offices to get their arms around.
For those who want to get on top of this issue, today’s post will be an overview of what needs to be done.
Basically, assessing and managing supply chain risk comes down to four things:
- Establishing the proper governance for the process
- Identifying who your critical suppliers are
- Assessing risk at your critical suppliers
- Mitigating risk from your critical suppliers
We’ll talk a little about each one below.
Source: Disaster Recovery Journal Never Break the Chain: Assessing and Managing Supply Chain Risk