Although companies are well aware of how the supply chain works, some may not realize how many links are involved in the chain, reports Canadian Underwriter.
According to NFP Canada's Katherine Dawal, vice president, risk management, a holistic understanding of your supply chain risk is among the first steps a business should take.
“Talk to your finance department; make sure you understand your business interruption exposure,” Dawal told the publication. “If you purchase delay-in-startup [coverage] on a construction [insurance] policy, make sure that you have an adequate limit…
“For risk managers, insurance is a great solution, but it’s not always the best solution. So don’t necessarily go out and buy an insurance policy just to cover that.”
Contingency planning is also key, says Dawal. “Do you understand who your suppliers are? Who are the alternatives? What are your contingency plans? Can you go and find something that will help you get back to production sooner than later?”
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