Supply Chain Risk Management

What is Supply Chain Risk Management?
Supply Chain Risk Management (SCRM) is the process of understanding your organisation’s most vulnerable supply chain points. The exercise helps organisations improve their strategic and operational supply chain management system as well as to prevent or mitigate potential interruptions. It will improve preparedness in the event that the unthinkable happens.

Benefits

• Effective management of supply chain risks - supplies are the lifeblood of any business and therefore managing the risks in this area will mitigate the impact of interruptions that can cause huge financial losses and seriously damage a company’s reputation.
• Improvement in your negotiating position at insurance renewal – insurance coverage can be expanded to fill gaps in the cover exposed by the process, allowing you to identify new types of ‘non damage’ business interruption risks.
• Satisfaction of corporate risk reporting requirements and ever increasing shareholder expectations for ‘no surprises’.
• The dynamic business environment of today is continuously transforming supply chains. Implement an embedded approach that continuously updates your exposure profile.
• To meet the governance challenge, supply threats should be understood at a senior level. This also determines the direction that appropriate risk financing strategies should take.
• Up-to-date loss profiles can influence the setting of internal risk retention levels.

Echelon’s Approach
Quantifying your supply chain exposures is a significant task, entailing many complexities. However you can easily manage this through the implementation of a customised solution, one that is integrated with existing business processes and employing an efficient way to capture business information. The scope of the study will be defined to suit your organisation and level of risk maturity, thereby avoiding common pitfalls and minimising the utilisation of staff’s valuable time.

This includes:

• A step by step guidance on an SCRM integration strategy and execution, including identification of key data sources
• Development of scoping criteria to determine which products take priority and what constitutes a key location
• Detailed checklists for each process step, ensuring that the right people are involved, the right questions are asked and the right data are extracted efficiently
• An exposure mapping and quantification tool, designed to capture and display data efficiently, in a simple way that’s accessible to non-risk personnel.
• Advice on mitigation techniques and access to wider insurance buying opportunities
• Support for further key location studies, including specialist risk assessments and access to risk engineering and business continuity management consultancy services

Our Experience & Credibility
Echelon’s highly experienced team has worked with many leading global organisations from a wide variety of business sectors. Our consultants are recognised specialists in the field of Supply Chain Risk Management.

For more information on Supply Chain Risk Management, please contact Echelon Risk Consulting Asia.