Supply Chain Risk Disconnect

Zurich Insurance has just released the findings of two major studies that reveal compelling insights into the supply chain risks facing U.S. businesses today.

According to Zurich's Third Annual Global SME Survey, which surveyed C-suite executives and managers at small and medium-sized enterprises (SME) around the world, half of all U.S. SMEs do not believe that a the loss of a main supplier would have any impact to business.

But interestingly, the 7th Annual Supply Chain Resilience Report – produced in collaboration with the Business Continuity Institute – found that 74 percent of organizations have suffered at least one supply chain disruption in the past year and that 14 percent suffered losses of well over $1 million as a result.

The conflicting data implies that too many businesses do not full understand the level of exposure facing their supply chains…and overlooking these risks can be extremely costly. Further evidence includes the finding that nearly one in ten organizations cannot name their key suppliers and seven in ten admit to not having visibility over their full supply chain.

According to Linda Conrad, Director of Strategic Business Risk at Zurich North America, these results have serious implications for businesses of all sizes. Many companies are so focused on managing the bottom line that they don't look out for these operational risks, which she equates with “driving blindfolded.”

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