“‘Supply Chain Risk Insights’” Web Site on The Wall Street Journal

While talking to SCRLC members about the impact of supply chain breakdown is like preaching to the choir, a surprisingly large number of businesses remain insufficiently aware of the risks and potential costs they are bearing on their own balance sheet.

In an effort to draw attention to the full strategic, operational and financial consequences of supply chain disruption, the Wall Street Journal has launched a dedicated web site feature, “Supply Chain Risk Insight,” presented by Zurich (http://www.supplychainriskinsights.com/).

The site debuted in mid-March and is scheduled to run for six months.

“We think of this site as part of global initiative to elevate broader awareness of supply chain risk to the C-suite,” explains Michael Kerner, CEO of Zurich Global Corporate in North America. “It’s a relatively new campaign, we started in Europe and now are bringing it to North America.”

The content of the site aligns with the Zurich’s focus on the customer ‘help points’ it offers concerning supply chain risk---awareness and understanding, risk assessment and impact quantification, mitigation consulting, and supply chain insurance risk transfer.

Citing a recent study reporting that nearly 3 of 4 businesses experienced supply chain disruption last year, Kerner explained “we are seeing increased activity around the issues of understanding what the risks are and analysis of the supply chain in terms of those risks, but we’re also seeing relatively little use of risk mitigation or risk transfer to address those risks.” (should we footnote this study was by the Business Continuity Institute ?)

Content on the site is provided by The Wall Street Journal. Each month, it will feature a different video interview and a main article (such as “Disruptions Happen: The Key is How You Deal With Them,” “You Care About Social Responsibility. Do Your Suppliers?”). The site also offers an archive of articles of related content, video and webinar presentations, and a calendar of relevant supply chain events.

“We see this site as wide reaching,” notes Kerner. “It’s intended to be applicable to any business with a supply chain.” The underlying editorial message is directed to CEOs and CFOs, “as they begin to realize supply chain risks are connected to their bottom line and corporate reputation.”

Although the benefits of the supply chain have long been appreciated in terms of cost management and competitive advantage, Kerner believes that “before the financial crisis, people didn’t appreciate how inter-connected the world is. They now have a greater sense of fragility.” (and the potential ripple effect that a single disruption can have on profitability).

Most companies, however, do not have the expertise to do a full-blown analysis of their supply chain risk, according to Kerner. To alleviate this, he points to the capability possessed by insurers like Zurich. “Our risk engineering has seen lot of risks manifest themselves over the years, they think about supply chain risk with an experience and perspective few companies possess internally.” Zurich's supply chain risk assessment will review both the potential profit impact and likelihood of disruption from a variety of factors, including supplier insolvency, geopolitical risk and other factors within and outside the control of a company.

Future site content will evolve through interactions with customers at events like the forthcoming Risk and Insurance Management Society meetings and can be expected to address subjects that help “identify chinks within the supply chain and other relevant topics.”