InternalExamples of internal risk influences include poor culture surrounding security of data; inadequate internal authentication and access protocols leading to illegal access of system; insufficiently robust protection of designs and trade-marks.
ExternalThere is often a gap between what is expected from suppliers, and what they are contractually bound to, or responsible for; a supplier may not have the expertise to properly manage data or access to your systems.
OperationalIf systems are breached, this can lead to supply chain disruption.
FinancialIllegal financial transactions could lead to unrecoverable losses; incurred delays may lead to increase in cost, cancellation of orders, penalty-clauses being triggered.
ReputationalPoor control of designs etc, can lead to poor quality copies becoming available; loss of consumer confidence if systems are found to be breached.
EconomicUnauthorised use of designs in poorly controlled geographies could lead to loss of revenue; loss of projected revenue can create business instability.
Whilst there are numerous BSI and ISO standards developed for business continuity, risk management and organisational resilience there is no global benchmark that can be used to test and develop an organisation’s end-to-end supply chain resilience. The objective of this CIPS introduction along with the forthcoming good practice guidance and online tool is set to fill this gap. This will help procurement and supply management professionals support the survival of their organisations by identifying supply chain risks whilst protecting shareholders and the general public against the effects of disruption and malpractice.
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Whilst there are a number of BSI and ISO standards developed for business continuity, risk management and organisational resilience there is no global benchmark that can be used to test...
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Examining the vulnerability of an organisation’s supply chain network can be used to identify such risks and weaknesses and produce mitigation strategies and corrective action plans...