COVID-19, along with its direct impacts (lockdowns, border closures, etc.), has sent a domino effect of related disruption, including supply shortages and financial distress – but these aren’t the only threats in town.
The coronavirus pandemic has had a huge impact on global risk-management strategies. Many companies learned in 2020 that their supply chains weren’t prepared for a disruption of such massive scale. Now, they’re determined not to get caught short again.
Vendor risk management, also called supplier risk management or third party risk management, describes the efforts of managing the risks posed by the companies who sell you products and services. This white paper from riskmethods will help you identify, assess and mitigate the risks posed by your vendors or other third parties.
Challenge: With Europe shutting down amid the COVID-19 pandemic, a global automotive parts supplier needed to convince a key client that it had visibility to avoid potential disruption in its supply network.
Supplier financial distress warnings have jumped 119% this year as regional lockdowns, plant closures and employee quarantines caused by the coronavirus pandemic have frozen cash flow and revenue for thousands of companies.