Gartner Research

Develop Contingency Plans for Your Critical Suppliers, or Risk Business Disruption

Published: 29 April 2016

ID: G00292751

Analyst(s): Gayla Sullivan, Christopher Ambrose, Roberta Witty

Summary

Failure to create contingency plans for the loss of suppliers that support critical business processes or systems can result in significant business disruptions. Vendor risk management leaders must ensure that contingency plans and exit strategies exist, and can be acted on if needed.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Implement and Enforce a Framework for Assessing Supplier Risk and Developing Contingency and Exit Plans That Align to Your Organization's BCM Strategy
  • Identify the Suppliers and Contracts That Require Contingency Planning Based on Their Business Criticality and Potential Disruption
    • Develop a Tiered Supplier Inventory
    • Classify Your Suppliers
    • Determine Which Suppliers Present the Greatest Risk Potential
  • Assess Your Critical Suppliers' Recovery Strategies and Business Continuity Plans, and Understand How They Manage Contingencies With Their Subcontractors and Partners
    • Use a Supplier Survey for a Deeper Dive Into Supplier BCM Program Practices
  • Develop Contracts That Include Early Termination Triggers, Actions and Rights, and an Actionable Exit Plan
  • Develop Supplier Contingency Plans
    • Develop Risk Mitigation Controls for Critical Suppliers
    • Develop Exit Strategies and Triggers for Critical Suppliers
    • Develop Alternative Supplier Strategy and Procedures

Case Study

  • Nirvanix

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