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By Ros Ayree, Regional Third Party Risk Governance Manager, Standard Chartered Bank
Can you provide an overview of the concept of resilience and considerations across the supply chain?
Resilience is defined as the ability to anticipate, respond to, adapt and recover from both incremental changes and operational or extreme disruptions. A firm or organisation is considered resilient when they are able to respond to disruptions whilst maintaining the provision of a pre-determined level of critical service to their clients. In today’s world most firms/organisations rely on third party services to in the development and delivery of their critical services, as such a failure or disruption in their supply chain could be adversely impact on their ability to provide service to their clients . In relation to Resilience, firms/organisations must consider the following with respect to their supply chain:-
- Understand their critical products/services and the associated supplier dependencies and the impact on the delivery of key services
- Assess the substitutability of critical suppliers to limit impact during disruptions
- Develop a multi sourcing strategy to minimise concentration risks and ensure diverse footprint
- Develop contingency plans and strategies to enable the firm limit the impact of disruptions
- Implement a robust Risk Management Programme for critical suppliers/vendors
