. Conduct an evaluation to gain full understanding of the inherited risks that come with each supplier. Well during an actual Business Continuity Plan use, your network security protections will be degraded temporarily. Logic tells us that to successfully manage enterprise risk the supply chain must be fully considered and integrated in a comprehensive business continuity program. So, a vulnerable Oracle Database that is normally protected by ordinary operating conditions is not protected equivalently during the recovery operations of the plan.
That is when the fraud that wipes your supplier out is going to happen. In alignment with business continuity best practices, here are some of the initial steps to take to identify and mitigate supply chain risks when selecting suppliers. Avoid taking on a risk-laden supplier by making certain each of your suppliers is capable of managing their risks and continuing to deliver at a level to meet your requirements even in the face of a disaster. Yet, measured facts on the ground can prove otherwise. Gain an understanding of who your critical suppliers are and which ones are high risk suppliers.
Really, you could be running on wireless networking in the back parking lot with a generator and two armed guards but the firewall rules wiped out for emergency functionality. She can be contacted at This entry was posted in and tagged , , , , , by. A well-developed and maintained business continuity program is critical to successfully managing supply risk and maintaining a resilient supply chain. Taking the steps necessary to identify, assess, and manage supply chain risks will help organizations mitigate and respond to disruptions that can carry serious financial and reputational consequences. All they need is a feel good business process with decent process evidence that is skewed with its techncial risk facts on the ground. All opinions of authors are their own and do not represent the official position of Q+E.
Because I work with the financial implications of technical risk, I see technical measures that do not always true up with the quality of these plans and Audit finding products. In addition, there are increasingly stringent regulations and audit requirements that apply to supply chain risk management. Anyone with an interest in maintaining a resilient supply chain will benefit by learning more about this increasingly important core business practice. Continuity and risk management professionals will gain greater insight into the continuity needs of supply and procurement business units. Before making any decision or taking any action that may affect the previous, you should consult a qualified professional advisor. Supply management professionals will gain greater understanding of business continuity planning and its application to managing supply chain risk.
She is a frequent conference speaker in North America and Europe and has written articles that have appeared in professional publications in North America, Asia, and Europe. I would soundly recommend taking these plans as an entrance criteria to your risk management but not as an excuse to move these 3rd parties in to your Risk Management Operations phase. When a disaster or significant disruption of operations occurs —whether it is internal or external such as a supplier failure — your operations can be slowed down or even brought to a halt, possibly with grim consequences. The importance of identifying, mitigating, and planning for internal, upstream, and downstream disruptions and the value of customer-supplier partnerships in managing risk are explored. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your health, personal life, or business. Yet despite growing awareness and reminders in the form of an ongoing series of disasters experienced across the globe over the past few years, many business continuity plans still do not adequately address the supply chain. Then, who could have known? These guidelines are equally applicable to contractors, outsourcing companies, and other business partners.
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