A Real Story of Why Risk Management Matters
“Can you afford the Risk?”
This morning I read the latest Risk Management Report of Supply Chain Insights. This survey is called “Can you afford the Risk?” and provides great insights into supply chain risk and how companies deal with it.
The author Lora Cecere tells a little story she experienced herself which I find it’s a great example why risk management matters to all of us:
A Story of Why Risk Management Matters
I was on the last flight out of Ronald Reagan airport as the skies darkened and the airport closed. Hurricane Sandy was steadily moving up the east coast. I was glad to get out of Washington, DC. I had stood at airline counters for hours to get on the last plane out of DC. Most were canceled. We knew that it was not just a normal storm. Companies had prepared for the worst.
At the time, many of my New York friends were in disbelief. They kept saying, “How bad could it really be?” We all now know the story: it was bad; a momentous event. Hurricane Sandy was no minor storm. The impact was severe. It killed at least 117 people in the United States leaving 7.9 million businesses and households without power. Over 9000 people in thirteen states spent the night in shelters. The New York Stock Exchange was closed for two days.
The next morning, I was meeting with a large food manufacturing company in the Midwest. My client, Glenn, leads a Fortune 500 supply chain. As we filled our coffee cups, Hurricane Sandy seemed miles away. In casual conversation, I asked him, “What was the impact of Hurricane Sandy last night on your supply chain?” ….
If you wanna know what happened next, watch out page 7+8:
What do you think? Can we afford the risk?