Facing factors influenced by socio-political situations like the war in Ukraine, and ongoing COVID-related issues, businesses are under more pressure than ever before to get ahead of supply chain disruptions. These disruptions are much more than a mere inconvenience. They have a very direct impact on company revenue and margins and can damage a company’s reputation. As such, a risk assessment and mitigation plan has become critically important as a way of proactively identifying and mitigating both minor and major risks.
What to Expect from a Risk Assessment
Working with Bristlecone for risk assessment and mitigation means meaningful solutions are implemented as quickly as possible, giving businesses the agility needed to make informed decisions sooner rather than later. Our two-dimensional assessment framework allows us to look for both long-term and short-term risks and their mitigation.
Instead of waiting to complete a full assessment to start addressing problems, we start to address problems as they’re discovered while we work toward a long-term risk mitigation model that accounts for feedback from the implementations and changing dynamics. This can include leveraging technology to automatically detect and address risks as they occur, as well as other measures like process and people transformation. This approach allows us to solve problems within weeks or even days, not months.
Throughout the assessment, we conduct an end-to-end analysis to determine where risks may exist within the enterprise, across partners, and in the public domain, considering questions such as:
- Is there anything the business is doing that increases risk?
- What are systematic sources of hidden risk?
- What regulatory or customer mandates must be followed in the area of risk?
- Could supplier processing be improved?
- What can be done to reduce risks that come with external factors like labor shortages, rising prices of commodities and materials?
- What about black swan events, which, by definition, are so far outside the norm that they’re extremely difficult or impossible to predict?
Improving Transparency and Communication
On top of supply chain disruptions, transparency has become another crucial matter. With costs increasing due to inflation, companies are under pressure to pass those extra costs onto their customers. But what is the best way for them to discuss this? Risk assessment and mitigation not only helps keep costs under control, but it can also be a tool to help companies better communicate the need for price increases with their clients to reduce resistance.
With deep industry and supply chain expertise, Bristlecone offers digital supply chain solutions designed with the future in mind. Our solutions are driven by speed, transparency, connectivity and resiliency, arming you with the tools you need to reduce risks, navigate disruption – and even thrive in the face of unrelenting change.