No company can (or should) eliminate all risk – it is not profitable to do so. But through their boards of directors and senior management, they should think about where they fit in today’s global economy, where their suppliers and customers are, how their understanding of the supply chain is doing.
Knowing the counterparty risks in your supply chain is the first step in being able to measure and mitigate them. These are important issues and should be on the main agenda of companies.
Earlier, we cited two extreme events that disrupted global supply. What is surprising is that, in addition to the pandemic and the Russian invasion of Ukraine, there is a third, even greater risk, which is not being managed and reduced with the level of seriousness required for the scale of the problem: climate change.
Therefore, companies must seriously understand their supply chains, plan and take the necessary measures, either to reduce exposure to damage, or to guarantee the planet for the next generations by decarbonizing their supply chain. Today and not tomorrow.
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