What does “supply chain risk management” mean to you? If you ask different people in different companies, you’re going to get a lot of different answers to this question. A company with a sophisticated SCRM program is likely going to refer to all 3 key phases of the risk management lifecycle (identify, assess, mitigate), whereas a company that is still learning how to tackle supply chain risk might have a more limited scope in mind.
Regardless of the state of your business, though, I can tell you how you shouldn’t define risk management: You shouldn’t define it as “something you do when a disaster has occurred.”
Here’s the thing: The key to managing risk isn’t about waiting for something to happen—it’s about getting ahead of the risk in the first place so that when it happens, you’re prepared. And for a risk management program to be most effective, you should be taking daily steps to make sure any kind of risk event has the smallest possible impact on your organization.
At riskmethods, I work with companies to reduce supply chain risk. Here’s my breakdown of the top 3 daily tasks that you should be doing to keep your supply chain secure