Executive Briefings

Supply Chain Security & Risk Management: There's Help for the 'Dirty' Work of Dealing with Risk Management

Analyst Insight: The dirty underside of supply chain is confronting the many risks inherent in 24x7-operations entrusted to "partners" in far-flung regions who are conducting fraudulent activities as well as dealing with unpredictable events. The big market here is risk transfer-insurance and others services to mitigate the impact of events. In addition, step by step, we are beginning to see approaches-metric and risk assessments methods, auditing and monitoring services, and technology - to support risk avoidance and assure recovery.

From a supply chain perspective, it is hard to "tag" the revenues associated with supply chain risk as a "space," though supply chain risk has emerged as a most important issue to be addressed by firms.

Sectors within include:

-  Risk transfer - various insurance products such as product liability, reputation risk, supplier failure, etc.
-  Trade finance and other financial instruments
-  Audit, inspection and monitoring services of the supply chain
-  Weather, geopolitical and other risk factors monitoring SaaS-subscriber services
-  Consulting - business continuity, risk assessment and process change to increase resiliency
-  Education for compliance, regulation and continuity best practices
-  ID and authentication technologies, as well as trace and track
-  Analytic software for predictive analytics, and risk avoidance.

Though these products are sold by disparate organizations, the end users-risk managers, supply chain managers, corporate security and legal-should work together to create the Supply Chain Risk Corporate Portfolio to ensure risk mitigation.

The Outlook

Firms will increasingly turn to risk-reduction approaches such as ID and authentication technologies, analytics to create new processes, and new insurance policies. From a supply chain perspective, it is hard to "tag" the revenues associated with supply chain risk as a "space." However, we have seen in our research that more focus has emerged in these turbulent times, and growth in sales of products within the Supply Chain Risk Corporate Portfolio will increase in 2010.

From a supply chain perspective, it is hard to "tag" the revenues associated with supply chain risk as a "space," though supply chain risk has emerged as a most important issue to be addressed by firms.

Sectors within include:

-  Risk transfer - various insurance products such as product liability, reputation risk, supplier failure, etc.
-  Trade finance and other financial instruments
-  Audit, inspection and monitoring services of the supply chain
-  Weather, geopolitical and other risk factors monitoring SaaS-subscriber services
-  Consulting - business continuity, risk assessment and process change to increase resiliency
-  Education for compliance, regulation and continuity best practices
-  ID and authentication technologies, as well as trace and track
-  Analytic software for predictive analytics, and risk avoidance.

Though these products are sold by disparate organizations, the end users-risk managers, supply chain managers, corporate security and legal-should work together to create the Supply Chain Risk Corporate Portfolio to ensure risk mitigation.

The Outlook

Firms will increasingly turn to risk-reduction approaches such as ID and authentication technologies, analytics to create new processes, and new insurance policies. From a supply chain perspective, it is hard to "tag" the revenues associated with supply chain risk as a "space." However, we have seen in our research that more focus has emerged in these turbulent times, and growth in sales of products within the Supply Chain Risk Corporate Portfolio will increase in 2010.