Successfully operating in the global environment requires managing a complex minefield of risks. While most organizations are adequately prepared for supply disruptions related to price volatility, equipment breakdowns and the like, these events pale in comparison to the supply chain impacts of natural disasters. Yet, many enterprises lack effective business continuity strategies for such devastating occurrences. Why the focus on natural events that may only occur once every 100 years? The answer is clear when supply management professionals consider the statistics. According to the Emergency Events Database (EM-DAT) managed by the Centre for Research on Epidemiology of Disasters, there were 3,770 natural disasters worldwide recorded between 2000 and 2009. The economic impacts of these incidents totaled more than $863bn. It is time to face the possibilities and plan effectively for the next disaster - wherever it may strike.
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