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The competitive landscape in many industries has changed. This is due to the combined forces of globalization and emerging digital technologies. To compete and prosper, companies must respond to the demands of customers who are highly price-sensitive. The result is relentless drive for efficiency and for lower costs.

This relentless drive for efficiency has moved companies to outsource economic tasks rather than perform them in-house. This quest has led to the existence of Complex Supply Chains. Organizations must understand that Complex Supply Chains are inherently susceptible to problems caused by opportunistic behaviors. Companies need to understand its risks and minimize impact.

To better manage risks resulting from Complex Supply Chains, companies must have a good understanding of the 5 key risk areas.

1. Risk from Opportunism
2. Weakness in the Supply System
3. Markets in the Supply System
4. Normalization of Deviation
5. Regulation

Understanding these risks will enable companies to work proactively to prevent problems that may be caused by Complex Supply Chains.

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Source: Risk Management: Complex Supply Chains PowerPoint document

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Tag(s): Risk Management Supply Chain Management

Number of Slides: 24 (includes cover, transition slides)

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Upload date (first version): Jul 30, 2020






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