THE RISKS
SUPPLY CHAIN DISRUPTION KNOWLEDGE AND CAPABILITY
Denition:
Percentage who gave a rating of 6 or 7 on a scale of 1 to 7
The disruption to business-as-usual operations globally, rooted in the global pandemic, has highlighted the need for resilience in supply chains in support of organizations’ achievement of strategic objectives. This risk examines whethergan or izationshavebuiltnheflexibilityoadapt to current and future supply chain disruptions.
Analysis: There is strong alignment among board members and senior executives with regard to the risk relevance of Supply Chain Disruption, with slightly more than half of these stakeholders seeing it as a highly relevant risk toheigan ro izations.TheCEgrouplagsbehindin personal knowledge of this increasingly important risk in theglobaleco,nomy whichmaybeaesu r ltoffewerCEs seeing this risk as highly relevant to their organizations.
RISK STAGE
Quotes: “Borders closing down, and things like the Suez Canal getting plugged up have made us more in tune with supply chain issues.” –CAE, Finance “It used to just be what we thought about when we pulled up to the gas pump… now it’s of importance across many industries.” –Board, Finance Expleor –NewtoOnRisk
RISK RELEVANCE Percentage who gave a rating of 6 or 7 on a scale of 1 to 7 – Supply Chain Disruption
43% CAE
53% 57% C-suite
Board
www.theiia.org 41
