Page 23 - Risk Management Bulletin April -June 2021

RMAI BULLETIN APRIL TO JUNE 2021

Risk

Management

update

Four Risks Most Supply Chains Face, and widespread wildfires can have significant effects
on your company's global supply chain.
and Six Ways to Manage Them
Pandemics can affect a business's ability to receive
The COVID-19 pandemic has thrown new light on the
products from suppliers in countries around the world.
importance of developing a comprehensive and
At the height of the pandemic, the container shipping
effective management strategy for tracking and
industry was forced to cut costs drastically, resulting
limiting risk in your company's international supply
in reduced capacity to transport goods across the globe
chain.
and causing significant delays.
If you don't have a risk management framework in
Poor connectivity. Poor connectivity in your
place, you won't be prepared to deal with future
international supply chain may be more of a
external threats to your business's supply chain like
predictable and known risk than political upheaval or
political and economic upheaval. You also won't be
environmental disasters, but it's still a significant risk
able to respond efficiently to internal breakdowns in
to your company's success. If you fail to invest in a
transparency and connectivity between employees.
system or logistics program that integrates all aspects
There's a wide variety of risks that international supply of your supply chain and allows you to monitor your
chains face. Here's a look at what - and how - product's journey to the customer's door, you risk
companies are managing today. limiting global chain visibility and alienating your
Economic or political instability. Major changes in clients.
global markets and the macroeconomic climate can Invalid or outdated data. Sending or receiving invalid
threaten international trade, potentially causing your and outdated data is another predictable risk to your
manufacturer or carrier partners to go bankrupt and company's supply chain, and it's also easily avoidable
affecting your company as a result. by using the right software system. If you provide your
Political instability can also create a considerable risk contracted carrier team with incorrect information,
to your global supply chain, particularly if you use they're likely to deliver the merchandise to the wrong
suppliers or manufacturers based in countries place, which results in a dissatisfied customer.
undergoing unpopular governmental changes. Tracking and Managing Risk

Unforeseen events. Unpredictable health and It can feel overwhelming to deal with monitoring and
environmental catastrophes like COVID-19 or raging managing risk to your company's international supply

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