SINGLE POINT OF FAILURE
It is mind–boggling to consider what it takes to produce the products we depend on critical drugs like blood thinners, plastic–based products such as syringes, isotopes for medical imaging, and milk–based baby formula. Or maybe your livelihood depends on your ability to transport products, on your customers having access to your online order entry system, or on the timely receipt of parts from your suppliers on the other side of the world. The occurrence of a single point of failure whether a product contamination, labor strike, trade credit crunch, an earthquake, or a health crisis can interrupt the flow of goods and cause total systemic failure.
Written by internationally recognized industry veteran Gary Lynch, Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management reveals just that the ten vital laws to successfully identifying, measuring, mitigating, and financing risk, with guidance for establishing your organization′s supply risk management program, avoiding bad decisions, and gathering better information and data to make good decisions.
Here, you′ll discover:
- How to establish your organization′s supply risk management program
- Why no risk strategy is a solution for bad decisions
- What causes supply chain risk management demand to trump supply
- The sourcing strategies that create more risk, not less
- Why managing the parts does not equal managing the whole
- What the best policy is for knowing what′s in your policy
Believing that all is well is a self–deception. You need to continually analyze and evaluate the risks to your supply chains and business networks, determine and learn the root cause of problems, and decide whether you have the proper philosophy, culture, and systems in place to identify, measure, mitigate, and finance risk. Addressing risk from several points of view, Single Point of Failure authoritatively guides you in how to remain agile to avoid risk, be resilient to respond, adapt and absorb risk, develop methodologies that are sustainable to scale, and maintain risk solutions.
Introduction Getting to the Truth.
Chapter 1 The Laws of the Laws.
Laws of the Laws.
Risk Management Defined.
Law of the Laws #1: Everyone Without Exception, Is Part of a Supply Chain.
Law of the Laws # 2: No Risk Strategy is a Substitute for Bad Decisions and a Lack of Risk Consciousness.
Law of the Laws # 3: It′s All in the Details.
Law of the Laws # 4: People Always Operate from Self–Interest.
Indirect and Secondary Impacts.
What Can you Conclude?
Chapter 2 Law #1: If You Don′t Manage and Lead Change, You Have to Surrender to it.
The Risk Wake–Up Call–Planned Change, Unplanned Consequences.
We Can′t Change the Past, but Can We Change the Future?
Can You See the Icebergs Ahead?
Chapter 3 Law #2: The Paradigm should Destroy the Parasite: Begin by Defining the Paradigm, Not by Ffighting the Parasite.
The Paradigm in Action.
Why Does the Organization Need to Identify a Supply Chain Risk Paradigm?
Beware! The Paradigm Can Shift Without Notice.
If the Shoe Fits.
Chapter 4 Law #3: Manage Your Business DNA in a Petri Dish of Evolving Risk.
Expanding the Risk Awareness Universe.
Know Your Business Know Your Surroundings.
The Keys to your Risk Kingdom.
Your Operation′s Complete Footprint.
Your Action Plan.
Chapter 5 Law #4: In Supply Chain Risk Management Demand Trumps Supply.
Everyone s Customer.
Building Your Demand–Based Strategy.
Market and Client Factors to Consider.
Chapter 6 Law #5: Never Set Up Your Suppliers for Failure.
Supply Chain Risk Management Program.
Sourcing Strategies that Create More Risk, Not Less.
Trust but Verify.
Chapter 7 Law #6: Managing Production Risk is a Dirty Job Focus on Managing the Endless Risk of Manufactured Weakest Links.
Going Global With the Production of Risk.
A New Collaborative Effort.
Why is Production So Critical?
Part Two of the Double Whammy: Labor.
Chapter 8 Law #7: The Logistics Risk Management Rule: Managing the Parts Does Not Equal Managing the Whole.
What is Logistics Risk?
Cargo and Warehouse Theft.
The Piracy Risk.
What′s at Risk?
Single Points of Failure and Aggregate Risk.
Supply Chains Don′t Survive on Product Flows Alone; Information Flows Are Essential.
In the End it′s all About the Priorities and Economics.
Chapter 9 Law #8: If Supply Chain Risk Management Isn′t Part of the Solution It Will then Become the Problem.
Now What Do I Do?
Enter the Risk Intelligent Supply Chain.
Economic Change A Catalyst for Redefining Resiliency Management.
At Time of Disruption.
What is Risk Mitigation?
Chapter 10 Law #9: Financing: The Best policy is Knowing What′s in Your Policy.
Insurance and its Role in Supply Chain Risk Management.
Background on Insurance in the Supply Chain Risk Area.
Current Insurance Solutions and Their Limitations.
Introducing Supply Chain Insurance: Approach and Challenges.
Corporate Customer Benefits Arising from Supply Chain Insurance.
What Does the Future Hold?
A View From the Insurer′s Side.
Chapter 11 Law #10: Manage the Risk as You Manage Your Own Your Supply Chains are All Interdependent but Unique.
Questioning Old Assumptions.
Personal Laws of the Laws.
GARY S. LYNCH, CISSP, is an Author, Managing Director and Global Leader of Marsh′s Supply Chain Risk Management Practice. He has contributed to the World Economic Forum (WEF) Global Risks Report, been a speaker on pressing global business risk issues for organizations such as Asia Pacific Economic Cooperation (APEC/Singapore & Australia), Risk and Insurance Management Society (RIMS), the World Customs Organization (WCO/Brussels), and The Wharton School, Center for Risk Management and Decision Processes. He also leads Marsh′s Global Pandemic Response Center. He works as a management consultant, specializing in helping senior executives solve complex business risk issues. He has developed critical thought leadership and solutions around emerging risk issues, including supply chain risk management and financing, information protection strategies and schemes, value chain risk strategies, cyber/IT–risk, business resiliency and continuity, and pandemic preparedness. He is internationally recognized and has held executive operational and IT risk positions at Booz Allen Hamilton, Chase, Prudential, and Ernst & Young. He is a pioneer in helping companies use his leading–edge methodology to transform their risk management programs. Gary is the author of At Your Own Risk (Wiley) and has appeared on NBC Nightly News, Bloomberg TV, ABC, and CNBC, and has been published in CEO Magazine, Shanghai Business Review, and CIO Insights.