Why Supply Chain Risk Management?
The nation can neither achieve total security nor afford to protect everything against all risks. Managing these risks is especially difficult in today’s environment of globalization, increasing security interdependence, and growing fiscal challenges for the Federal Government.
– The U.S. General Accounting Office
Civilian, Military and Intelligence Agencies are Rethinking their Supply Chain Vulnerabilities
- Growing commitment to identify, isolate and manage risk influenced by traumatic events such as 9/11, Hurricane Katrina, outbreaks that affect public health, and the recent financial crisis. Other incidents such as airport terrorist threats, E. Coli and counterfeit product insertion further elevate the importance of risk management among regulators and decision makers.
- Increasing recognition of the unmanaged risks created by today’s increasingly complex, global and information-intensive supply chains. Federal cyber-security initiatives – such as the Bush Comprehensive National Cybersecurity Initiative (CNSI) and Obama’s Cybersecurity Policy Review – create additional impetus for action.
- Mounting pressure on federal agency leaders to achieve higher supply chain performance and security within constrained operating budgets. These leaders want greater financial accountability, end-to-end visibility and systematic security.