Current level of risk perception within the supply chain

Question:

Globalisation and outsourcing, while providing opportunities for growth and profitability, have exposed many supply chains to unprecedented levels of risk in the last few years including the disruption caused by Covid-19. Awareness of supply chain risk is crucial for firms to effectively manage their supply chains. ‘Supply Chain Risk Management’ (SCRM) has emerged as a focus area for many supply chain managers in various surveys in the last few years. This was particularly true during 2019-21, where international supply chains of many companies from various industries were subjected to continued disruption. The failure to respond adequately during the Covid-19 disruption has exposed the inadequacy of their SCRM strategies.

In this regard, choose an industry of your choice and address the following supply chain risk management issues afflicting the industry.

1. Identify the current level of risk perception within the supply chain of the chosen Industry.
2. Analyse the existing supply chain risks and the operational impacts of those risks on the firms in the chosen industry.
3. Based on your understanding of the drivers of supply chain performance, investigate what risk mitigation approach or approaches would have been deemed useful against the supply chain risks caused by Covid-19 in the chosen industry. Also, discuss the cost-benefit analysis of the chosen approach or approaches.