Supply Chain Disruption

Definition:

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 whether organizations have built in the flexibility to adapt 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 to their organizations. The CAE group lags behind in personal knowledge of this increasingly important risk in the global economy, which may be a result of fewer CAEs seeing this risk as highly relevant to their organizations.

KNOWLEDGE AND CAPABILITY

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

RISK STAGE

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RISK RELEVANCE

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7 – Supply Chain Disruption

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

43%

CAE 53% 57%

C-suite Board