Supply Chain Risk Management: Knowing the Risks — Mitigating and Responding for Success

By Kinaxis

The last few years have seen significant events around the world that have only heightened the awareness of how detrimental risk can be to the business. This has caused supply chain risk management to become front and center in organizations' minds. But the question is… are we looking at risk in the right way?


Supply chain risk management has a component that many companies (and many risk management experts) fail to consider; the ability to respond.

Some risk can be managed through better supply chain design; assessing where supply “choke points” are, and building in supply and logistical redundancy. Other risk, however, must be managed through better response capabilities because:
  • even the best thought out mitigation strategy may fail when the time comes to implement;
  • events that you couldn’t have imagined (or considered too low a probability to worry about) during your risk assessment may in fact come to pass; and very importantly,
  • small events, which may be considered insignificant on their own, but that taken in sum become a large risk consideration if not managed effectively.
This paper takes the reader through typical mitigation planning strategies, to new risk management approaches, to the specific capabilities required to succeed. It highlights:
  • The 4 steps to analyzing and mitigating supply chain risks
  • The need for response management as part of a supply chain risk management strategy
  • The 6 capabilities needed for supply chain risk mitigation and response
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