Supply Chain Vulnerabilities Quiz

10 Questions

What is the common theme at the heart of supply-chain crises?

The lack of robust processes to identify and successfully manage growing supply-chain risks

What percentage of executives, in a 2010 survey, believed that their companies were more at risk from supply-chain disruption than previously?

71 percent

What has exacerbated the challenge of supply-chain risk management?

Globalization

What kind of new threats are emerging alongside more traditional supplier risks?

Cyber-ransom attacks

What are known risks and how can they be managed?

Known risks are identifiable and measurable, such as supplier bankruptcy, and can be managed over time by estimating likelihood and quantifying impact.

How can cybersecurity vulnerabilities in the supply chain be quantified?

Cybersecurity vulnerabilities in the supply chain can be quantified through systems that use outside-in analysis of a company’s IT systems to quantify cybersecurity risks.

What is the recommendation for organizations to start managing supply-chain risks?

The recommendation is for organizations to start by thinking of their risks in terms of known and unknown risks, investing time with a cross-functional team to catalog a full scope of risks they face, and building a risk-management framework.

What are unknown risks, and why are they difficult to foresee?

Unknown risks are impossible or very difficult to foresee, such as the sudden eruption of a long dormant volcano disrupting a supplier or the exploitation of a cybersecurity vulnerability buried deep in the firmware of a critical electronic component.

Why do public- and private-sector organizations struggle to progress significantly on the topic of supply-chain risk management?

These organizations struggle due to difficulties in cataloging and addressing known risks, improving resilience for unknown risks, and the existence of gray areas where risks are hard to understand or define.

What are some examples of known risks in the supply chain?

Examples of known risks include supplier bankruptcy leading to a disruption in supply and cybersecurity vulnerabilities in the supply chain.

Study Notes

Supply-Chain Crises

The common theme at the heart of supply-chain crises is the lack of preparation for disruptions.

Executives' Perception of Supply-Chain Risk

In a 2010 survey, 75% of executives believed that their companies were more at risk from supply-chain disruption than previously.

Exacerbating Factors in Supply-Chain Risk Management

The challenge of supply-chain risk management has been exacerbated by globalization, complexity, and interconnectedness.

Emerging Threats in Supply-Chain Risks

New threats emerging alongside traditional supplier risks include cyberattacks, natural disasters, and geopolitical uncertainty.

Known Risks in Supply-Chain Management

Known risks in the supply chain include supplier insolvency, logistics disruptions, and material shortages.
These risks can be managed through strategies such as diversification, risk assessments, and contingency planning.

Cybersecurity Vulnerabilities in Supply Chains

Cybersecurity vulnerabilities in the supply chain can be quantified through risk assessments and scenario planning.

Recommendations for Supply-Chain Risk Management

Organizations should start managing supply-chain risks by identifying critical dependencies and developing mitigation strategies.

Unknown Risks in Supply Chains

Unknown risks are unforeseen events or disruptions that are difficult to foresee due to their unpredictability and uncertainty.

Challenges in Supply-Chain Risk Management

Public- and private-sector organizations struggle to progress significantly on the topic of supply-chain risk management due to lack of resources, data, and strategic planning.

Examples of Known Risks in Supply Chains

Examples of known risks in the supply chain include natural disasters, supplier insolvency, and logistics disruptions.