Identifying and Mitigating Supply System Weaknesses PPT

This PPT slide, part of the 24-slide Risk Management: Complex Supply Chains PowerPoint presentation, focuses on identifying weaknesses within the supply system, emphasizing the need for a proactive approach. It highlights that these weaknesses can lead to significant issues if not addressed. The primary concern identified is moral hazard, which refers to a situation where individuals or entities do not have the incentive to guard against risks because they are shielded from the consequences of their actions.

The description section outlines the necessity of actively searching for vulnerabilities that could disrupt operations. This proactive stance is essential for maintaining the integrity of the supply chain. The example provided illustrates the concept of moral hazard in the context of mortgage lending. It describes how mortgage lenders and brokers, acting as intermediaries, often lack accountability once the mortgage is sold. This detachment can lead to poor decision-making, as the focus shifts to adhering to established rules rather than assessing the actual risks involved with borrowers or properties.

The slide suggests that without a clear understanding of these risks, organizations may overlook critical factors that could jeopardize their supply chain stability. The concluding note emphasizes the importance of recognizing local situations and the potential repercussions of inaction. This insight serves as a reminder for executives to ensure that all parties involved in the supply chain are aware of their responsibilities and the risks they face. Overall, the content encourages a comprehensive risk management strategy that prioritizes vigilance and accountability.

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Risk Management Supply Chain Analysis Supply Chain