Managing Supply Chain Risk

1. Increase visibility and awareness. Make sure risk management is a regular feature of discussions, reports, KPIs and decisions involving supply strategy and tactics, even when no risks are occurring.
2. Create or enhance risk management maps of the supply chain. For example, map geographies, facilities, logistics, material flows, information flows, dependencies on systems or data, and alternatives or options at each point should a risk develop that degrades or
eliminates a mapped location, capability or asset.
3. Improve supply chain partner relationships and information flow measures and metrics.
practices, knowledge of probabilities of specific risks and their effective risk countermeasures, and the overall optimal balance in the supply chain of known risk prevention and
4. Benefit from training and education, whether by formal classes or informally by conducting supply chain risk simulations or drills. Education should help build skills in best post-risk exposure readiness and agility.
5. Capture and address hidden soft risks and previously unforeseen, unintended or unaccounted-for issues. Decisions designed to increase the pace of production, for example, may increase hard or soft risk and should be analysed and addressed in advance of practice.