Supply Chain Risk Appetite

Four steps to write a risk appetite statement

A risk appetite statement helps in supply chain risk management by establishing accountability and readiness for managing risk to drive business success and value creation.

In an era of continuous disruption, an ill-defined risk appetite statement can create an environment of ad hoc, siloed decisions on short-term targets.

Follow four steps to prepare, draft and operationalize a supply chain risk appetite statement.

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Assess risk posture and implement a risk appetite statement.

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    Supply chain risk management is key to an effective risk appetite statement

    Key tenets of supply chain risk management are enhancing resilience and improving competitiveness. But today we must also account for unprecedented, fast-developing trends as well as transformation inside the organization. This makes it difficult to achieve agility and competitive advantage. To successfully define your supply chain risk appetite statement in an era of continuous disruption, you must approach risk management collaboratively, addressing the needs of supply chain, procurement and enterprise risk management (ERM) managers. Innovative technology solutions and advanced analytics enable continuous assessment, from which you can prepare, draft and operationalize the supply chain risk appetite statement. Gartner provides the insights, advice, data and tools on risk management that inform a supply chain risk appetite statement. Visit gartner.com to learn more.