Organizations are increasingly building resilience against supply chain risks, which is promising. A survey of 316 global organizations shows that most are taking steps to enhance resilience through investments in technology, governance, and supplier management. However, few have achieved the necessary maturity to navigate the current dynamic risk landscape effectively.
Here are the steps that leading organizations carry out and areas where other organizations have opportunities to mature their approach to risk.
- Get deeper visibility into disruption—Most organizations (81%) monitor global supply chain disruptions and assess supplier risk profiles to enhance visibility and resilience. However, only 46% find that these systems provide insights into the specific impacts of disruptions on their business, highlighting a need for improvement. Understanding broad disruptions is valuable, but knowing their specific business implications is crucial.
- Drive accountability for risk governance—Organizations shouldn't rely solely on technology for risk management, as accountability is crucial for acting on data and making decisions. Risk governance teams, for example, manage organizational risk through established policies and procedures. Fortunately, 91% of organizations have such teams in place. However, only 38% continuously review gaps for improvement.
- Have a business continuity plan in place—A business continuity plan (BCP) ensures the ongoing delivery of products and services at acceptable levels after a disruption. While 91% of organizations are working on gathering BCPs from suppliers, many can improve their processes: 28% are just collecting BCPs, 27% are reviewing gaps, and only 36% have a mature process that includes gathering, reviewing, and continuous improvement of BCPs.
- Engage insurance providers and increase coverage based on risk—Regularly reviewing insurance coverage is essential in today’s dynamic risk landscape to protect against unexpected costs. However, only 50% of organizations actively conduct periodic reviews with their insurers and adjust coverage based on supply chain risks.
Learn more in APQC’s Benchmark Your Supply Chain Risk Management Maturity.