Business involves the art of foreseeing and managing risk. Unexpected events audit our resilience, exposing internal deficiencies in our systems and structures. What organizations do to shore up their defenses before chaos arrives will determine how far they can stretch without breaking and how soon they recover
Supply chains and demand chains are inextricably linked, evolving into value grids. Grids are great when the various components within them function properly but when a single component fails, failure anywhere may well cause failure everywhere.
Let's step away from the here and now for a minute and think through risk interconnections and the cascading effects that could emanate from them
What is your demand-pull through strategy? What can be done to guard against demand chain disruption? Are you measuring the right things?
How much cash do you need? Do you have a natural hedge? What is the impact of your capital structure on the value of your intangible assets?
What are the consequences of failure in your tightly coupled systems? Do you have reliable but unsafe systems? What can you do to make your supply chain more responsive and resilient?
Which political risks affect your organization the most? Do you have a good system in place for timely warning and action? How can you reduce exposure to the risks you have identified?