Impact of geopolitics on supply chains? Huge.
• Putting access to important suppliers at risk.
• Making it difficult for suppliers to meet quality and delivery commitments.
• Limiting supplies and access to raw materials.
• Pushing prices up.
• Complicating logistics…
Which of these (and other) risks can be effectively mitigated through insurance? And which cannot?
Supply Chain has seen a lot of shortages in recent times, but there has been no shortage of geopolitical developments greatly complicating supply chain management. E.g.:
• Russia / Ukraine war,
• Tensions with China,
• Conflict in the Middle East,
• Government coups in Africa,
• Sanctions / bans / restrictions and
In addition to the specific impact from individual developments, there is an exponential-risk effect. Part of this exponential risk stems from a lack of understanding of hidden dependencies and potential asymmetrical responses in global supply chains.
Learning Objectives -
- Identify key Supply Chain geopolitical risks.
- Describe key areas of impact of geopolitical risks on companies’ supply chain operations.
- Discuss the effectiveness of insurance as a geopolitical risk management tool for Supply Chain.
Andrei Quinn-Barabanov, Supply Chain Industry Practice Lead at Moody’s Analytics
Nicola Passariello, Financial Crime & Third Party Risk Management Industry Practice Lead at Moody’s Analytics
Hugo Veazey, Financial Crime Compliance Industry Practice Lead at Moody’s Analytics