Managing Risk in Supply Chain
THE SUPPLY CHAIN RISK MANAGEMENT LIFECYCLE
1. Risk Identification: The only way to address risk is to make sure you’re identifying it in the first place. The first phase of the risk management lifecycle is to establish a risk profile and then enact active monitoring to keep it up to date
2. Risk assessment: understand what impact a risk event could have on your business. Beware of those partners who have a significant impact on sales, margins and profit.
3. Risk mitigation: define both preventive action plans and reactive action plans. These are what provide the basis for addressing risk using appropriate measures to secure supply and protect brand.