The Need for Strategic Risk Management

In March 2021, one of the world's largest container vessels, the 400m long “Ever Given” carrying 18,300 containers, was wedged sideways across the Suez Canal for six days.ⁱ This resulted in a complete blockage of one of the planet's major trade routes, resulting in unmitigated trepidation for the global shipping industry. It was estimated that this somewhat “short” blockage cost international trade anywhere between a staggering USD 6-10 billion weekly while reducing the annual trade growth by 0.2-0.4 %. This incident showed the potential risk of unplanned supply chain incidents and the sizeable impact they can have on businesses and the global economy. Thus, businesses should be aware of these possible risks and take robust steps to protect against them.

In this white paper, co-authored by Shawn Galloway, CEO of ProAct and Avetta Fellow, you will learn:

• How to create a strategic risk mitigation plan
• What are the best practices for a robust enterprise risk culture
• Why supplier prequalification and subcontractor management are important