BCG very relevant but massive topic . There are many areas of risk , and trying to identify and mitigate your largest threats can be an overwhelming task . What do you feel people are or aren ' t doing right in this area ?
“ Whenever I talk about risk management , I feel that it is too decoupled from the normal way of running supply chains because I often feel that most of the risk monitoring processes are set up in a supply chain agnostic way . And I do appreciate that there are some risks that are simply not associated with the supply chain . For example , major financial risks or reputational risks may not be as closely related , but then when it comes to supply disruptions , disruptions in factories , and so on , sometimes I don ' t feel that it is ingrained into the normal processes , like the IBP planning processes and the mitigating actions are too decoupled .
“ What I ' m advising our clients to do is to think of the supply chain as a permanent set of risks , which sometimes materialise and sometimes not . The ability to respond to both smaller and bigger risks is a capability that supply chains do need to have . There should be little to no gap between the processes , no artificial separation between the standard way of running a supply chain and a risk mitigation strategy . The goal should be to integrate those processes as closely as possible .”
“ In risk monitoring activities , I think there ' s also too much gut feeling involved at the moment . So whenever we work on this topic , we bring in more data-driven , analytical ways of monitoring environments , and then having a better inflow into the risk mitigation discussion , but then putting it into the , for example , IBP planning courses to discuss it seamlessly with the other supply chain topics .”
And with that , he was off , and in my mind ’ s eye , triaging broken supply chains .
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