Supply chain risk is currently highlighted as the number two top risk within organisations, with cyber as number three and change risk as the number one risk, which technically is driven by other risks below. There are 10 operational risks identified in 2023, these being, change risk, supply chain or third-party risk, cyber risk, financial crime control weaknesses, IT failures, people risk, data mismanagement, regulatory risk and climate action failure.
All these identified risks stated above are addressed through our RUBIQ 10-step Advisory Programme.
While all these risks should be of utmost importance to any organisation, let’s look at supply chain as a risk and how the steps you can take to mitigate the number two risk of 2023.
In an interconnected and globalised world, businesses are constantly navigating a complex web of relationships to ensure the smooth flow of goods and services. At the heart of this intricate network lies the supply chain, a critical lifeline that sustains countless industries and drives economic growth. However, beneath the surface of this intricate machinery lies an omnipresent danger – supply chain risk. This blog will delve into the realm of supply chain risk, unravelling why it has emerged as one of the most substantial threats facing businesses worldwide.
The COVID-19 pandemic, with its far-reaching consequences, has undeniably cast a spotlight on the fragility of supply chains. From disruptions in sourcing raw materials to unprecedented transportation challenges, the crisis laid bare the vulnerabilities that lie within the intricate threads connecting suppliers, manufacturers, distributors, and retailers. As the world emerges from the pandemic’s grip, it becomes imperative to recognise that the risk landscape has fundamentally evolved, necessitating a thorough understanding of supply chain risks.
Supply chain risk refers to the potential disruptions, vulnerabilities, and uncertainties that can impact the smooth functioning of a company’s supply chain operations. These risks can manifest in various forms, ranging from natural disasters, geopolitical instability, and economic downturns to supplier failures, cyber-attacks, and regulatory changes. With their capacity to disrupt production, delay deliveries, increase costs, and damage reputations, these risks can have far-reaching implications for businesses of all sizes and across industries.
Now, more than ever, organisations are recognising that a reactive approach to managing supply chain risk is no longer sufficient. The increasing complexity and interdependence of supply chains necessitate proactive measures to identify, assess, and mitigate potential risks. Companies must embrace a strategic, end-to-end approach that encompasses all stages of the supply chain, from procurement and manufacturing to distribution and customer service.
RUBIQ has a meticulous risk assessment that dives into an organisation’s weak and strong points in terms of their maturity when it comes to dealing with certain risks. In order to combat the discussed supply chain risks, organisations need to implement this assessment and ensure they are aware of their weak points as well as identify what they can do to ensure they are prepared if a supply chain risk should arise.
Want to know more about our risk assessment? Get in touch and we would be happy to discuss it further.
