Understanding the supply chain risk profile

Many organisations today are addressing the issues of what has come to be termed business continuity . In practice, however, there tends to be a limited focus for much of business continuity management. There is a strong focus on IT and internal process management but often the wider supply risk dimension is not considered. This is 

To widen the focus on supply chain vulnerability it is suggested that a supply risk profile be established for the business. The purpose of the risk profile is to establish where the greatest vulnerabilities lie and what the probability of disruption is. In a sense this approach takes the view that  

Supply chain risk = Probability of disruption x Impact 

To help identify the risk profile of a business it is helpful to undertake an audit of the main sources of risk across the network. This audit should examine potential risk to business disruptions arising from five sources  

How vulnerable Is the business to disruptions in supply Risk may be higher due to global sourcing, reliance on key suppliers, poor supply management, etc, 

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