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Supply Chain Risk Management

Supply chains are complex, multi-dimensional and are becoming increasingly global. Important parts of an organisation’s supply chain may be invisible and the risks associated can be difficult to quantify.

Many organisations fail to identify, manage and mitigate risks which could threaten the supply chain and ultimately the business itself.

What is Supply Chain Risk Management?

Supply chain risk management analyses the supply chain to identify critical dependencies.

Willis Towers Watson will build an understanding of how resilient the supply chain is to interruption and provide a programme to ensure the business is safeguarded in the event of an incident.

What are the benefits?

A supply chain risk management process will deliver the following benefits:

  • Improved business continuity and rapid recovery from an incident
  • Procedures to protect revenue and market share following an incident
  • Reputation protection as a reliable supplier (and customer)
  • Focused business recovery to where it will have the greatest return
  • Maximum efficiency of supply chain insurance

Contact us:

For further details please contact your local Willis Towers Watson office.

Strategic Risk Management factsheet:

Case study:

A global clothing retailer client buys business interruption insurance at the customer-facing end of its supply chain (stores and distribution centres) but wants to understand the risk profile associated with the supply of its finished goods (i.e. what the company sells in its shops).

By engaging Willis Towers Watson specialists, the retailer gained an in-depth understanding of the supply chain.

This was achieved through a series of meetings and workshops, which made it possible to:

  • Understand which area of the supply chain would have the largest impact if it should fail; based on revenue, reputation and market share
  • Map and analyse components of the supply chain; for example, manufacturers, logistics, utility providers and cotton growers
  • Explore the components’ risk profiles; for example, property damage, natural catastrophe, labour issues, ethical issues, environmental, utilities and theft

The retailer suffered a major incident that affected its supply chain but as a result of action taken following the supply chain risk review, they were able to utilise risk management techniques to minimise the impact the incident had on market share.