LMI are supporters of the Business Continuity Institute (“BCI”) with our John Worthington, head of ContinuityCoach (www.continuitycoach.com), holding a position on the international board, heading up the compliance area. As a result of our association, we receive useful reports etc. from them.
The latest that I have received is the results of the 5th Annual BCI Supply Chain Resilience Survey, 2013.
As you would expect, supply chain disruptions continue to have significant impact on business. The survey shows that 75% of respondents experienced at least one incident that caused a disruption.
The risks that seemed to be of lesser concern only last year, have risen up the scale as the causes of disruption. Transport network disruption moved from 14th place to 4th in the matter of a year and cyber attacks went from 18th place to 5th.
Understanding supply chain or dependency risk is important for any insurance broker dealing with business and I share the report with you in the hope that it assists in explaining the risks to clients. Identifying and managing supply chain risk, including the ever increasing cyber risk, is part of any good Business Continuity Management Plan, with insurance being one form, albeit an important form of risk management.