In a world of increasing complexities and value chain dependencies with internal stakeholders as well as external suppliers, an ill-defined risk appetite can create an environment of ad-hoc, siloed decisions based on short term targets. Gartner’s four-step framework to draft and operationalize an effective supply chain risk-appetite statement helps supply chain leaders drive alignment with key stakeholders, establish practical guidelines and measurable risk indicators that are critical to business success and driving value.
Supply Chain Risk Management
Increase your overall supply chain risk readiness during disruptions
Formalize a risk appetite to drive operational agility and create value
Leaders shift focus on supply chain disruption risks
Traditionally, supply chain leaders focused on wringing efficiencies and cost out of supply chains. More recently, senior management and supply chain leaders are becoming worried about supply chain disruptions due to risks such as natural disasters, pandemics, political uncertainty, cyber and terrorist attacks and third-party or supplier threats. Further, internal transformation of supply chains into lean, complex and globally dispersed entities is adding to the risks of supply chain disruption.
Managing supply chain disruption risk requires an integrated approach
Supply chain disruptions arise due to external and internal factors. Addressing these factors requires cross-functional collaboration between enterprise risk management (ERM), procurement, supply chain and other ground managers. Heads of ERM must work alongside supply chain leaders to recognize supply chain failure points and their possible consequences.
Supply chain risk management insights you can use
Gartner future work insights, advice, data and tools help supply chain leaders develop effective strategies to manage disruptions and understand the key drivers of supply chain disruption risks.
Define Your Risk Appetite to Create a Resilient Supply Chain
Chief procurement officers (CPOs) are the first line of defense when a disruption occurs. Therefore, CPOs should be responsible for creating a risk appetite statement for the supply chain.
Pandemic Preparedness Requires Strong Business Continuity Management
This complimentary webinar reveals key practices for strong business continuity management and how you can utilize BCM in times of crisis, including the Coronavirus (COVID-19) pandemic.
Coronavirus: Lead Your Organization Through Disruption
With the rapid spread of COVID-19, leaders must prepare for how to manage and respond to the impact of a global pandemic. In this ThinkCast, we talked with Gartner experts to learn how executives should be responding.
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Gartner topic experts
Gartner supply chain experts include more than 100 people worldwide. Meet a few of our leaders.
Miguel Cossio
Senior Principal Analyst
Koray Kose
Senior Director Analyst
Alex Pradhan
Senior Principal Analyst
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