The COVID-19 pandemic has disrupted global supply chain networks in unprecedented ways. The virus' business impacts build upon other major supply chain challenges, such as geopolitical uncertainty, regulatory changes, supply chain reconfigurations and an increase in the number of natural disasters. Companies that rely on supply chain networks need to proactively address these evolving challenges as well as other hidden risks to improve resiliency to avoid costly disruptions to production.
Latest Supply Chain LinkedIn Poll
In our recent informal LinkedIn poll on how companies manage the physical security of their supply chains, an overwhelming majority of respondents selected a comprehensive approach that consists of end-to-end assessments, spot checks, and targeted reviews of their supplier’s suppliers (fourth parties). This likely reflects the acknowledgement that a multipronged approach to managing risk is most effective. However, while most effective, this approach simultaneously exposes a company to risk given the challenge in efficiently operationalizing a multi-step process on something as complex as a global supply chain. Random checks on low risk suppliers while skipping higher risks ones is likely just as ineffective as not conducting any checks at all. In a world of finite resources, companies need to implement a risk-based approach to most effectively and efficiently manage physical security risks across their end-to-end supply chain.
As a leading global provider of risk solutions, we are optimally positioned to protect, restore and maximize the value of our clients’ global supply chains. Our global reach, investigative expertise, local tax and regulatory knowledge, and real-world experience allow us to help clients proactively identify and mitigate risks before they materialize.
Our supply chain risk management professionals include on-the-ground industry experts, investigators, forensic accountants and data analysts; cyber, political and security risk experts; former regulators, law enforcement officers and government officials; and valuation, tax and transfer pricing experts. Augmenting our professional expertise is a suite of modern technology tools to provide the most comprehensive risk management solutions.
We can provide our clients with tailored solutions to address their unique supply chain concerns, such as:
- Loss of business continuity due to continuing COVID-19 related impacts
- Geopolitical uncertainty, such as trade and tariff wars, regulatory and tax changes, political instability and industrial unrest
- Supplier or consumer insolvency and bankruptcy
- Cyber security threats and data privacy breaches
- Intellectual property theft and counterfeit/grey market
- Breach of contract, force majeure and other contract and counterparty disputes
- Operational strategy, including competitive analysis, supply chain network design and transaction merger integration
- Fraud, corruption, money laundering and other regulatory violations
- Theft, tampering, smuggling and other security risks
- Ethical sourcing, forced labor and environmental, social and governance (ESG) issues
Supply Chain Risk Review Services
Our Supply Chain Risk Review screening tool draws upon our firm’s proven risk identification capabilities to act as an early warning system, highlighting latent third-party risks hidden within a supply chain. By identifying possible areas of concern early, our clients can more efficiently and cost-effectively address risks before they disrupt the flow of information, goods, services and cash across their global supply chains.
Our Supply Chain Risk Review screens for the following types of third-party risks:
- Compliance and regulatory risks
- Contract risks
- Cyber security risks
- Data privacy risks
- Fraud risks
- Security risks
- Unknown vendor risks
Contact us today to learn more about how our Supply Chain Risk Review can help you proactively and comprehensively identify potential risks hidden in your global supply chain networks.
Supply Chain Security and Crisis Management
Kroll provides security and crisis management support to companies operating within the global supply chain. Threats to the supply chain’s integrity are present at all component links—from manufacturing facilities and transportation/shipping networks to distribution centers.
The impact of a security beach or supply chain disruption can result in both direct and indirect significant financial loss, market share loss, regulatory compliance issues and/or damage to an organization’s reputation and brand.
Kroll can assist organizations in the review and assessment of existing security measures or develop a comprehensive supply chain security program to identify and mitigate their unique risk environment and threat landscape.