| Without exceptional risk management a company | | | | complex systems and pieces of equipment. |
| cannot compete with major players in the industry | | | | Globalization has resulted in the supply chain industry |
| and reach the level of production required. | | | | making significant changes in order to achieve the |
| If accidents and setbacks start happening on a | | | | lowest production costs. The rise of the internet has |
| regular basis then a company's reputation will be | | | | also brought a fair amount of changes to this |
| damaged beyond repair. This will drive away potential | | | | industry and the most influential change is to do with |
| investors and people wishing to work with the | | | | the compression of time. Everything is much faster |
| company. In fact, many people working in this | | | | today and supply chains are expected to deliver |
| industry have agreed that failure to utilise appropriate | | | | products at a much fast speed and respond |
| risk management guidelines is the most common | | | | appropriately to high demand. |
| cause of business failure and revenue loss. | | | | Supply chains can experience both major hazard and |
| Risk management strategists should have the skills to | | | | minor disruptions. It is important to be aware of the |
| spot ways of reducing risks and implement the most | | | | events that could lead up to a disaster. However, it |
| relevant practical guidelines possible. They also need | | | | must be noted that a series of small accidents or |
| to do some research into what new techniques are | | | | disruptions can be just as much of a negative impact |
| developing and be aware of new and more effective | | | | on the business over time. |
| ways of managing risk. | | | | It is important for people working in this industry to |
| In the past supply chain management was a much | | | | bear in mind that no matter what safety procedures |
| more simple process with a lower level of risk. This is | | | | are put in place, there is always the chance of an |
| because the equipment and production functions they | | | | accident. Accidents can happen without warning, and |
| used were pretty basic. Technology has developed | | | | companies must learn from their mistakes and put |
| at an alarming rate, but so has the need to manage | | | | preventative procedures in place. |