Government, business and civil society leaders gathered this past week in Davos, Switzerland for the World Economic Forum’s Annual Meeting. Yesterday, January 24th, the Forum’s Supply Chain Risk Initiative launched a new report titled, Building Resilience in Supply Chains. This is the second report of the Forum’s Risk Initiative; the first, New Models for Addressing Supply Chain and Transport Risk, was released at the 2012 meeting. The latest report focuses on building a framework to manage the risks of global supply chains, and outlines the requirements for a resilience framework. As the report notes,
“Systemic risks have global geographic scope, cross-industry relevance, uncertainty as to how and when they will occur, and high levels of economic and/or social impact requiring a multi-stakeholder response.”
The report supports a multi-stakeholder approach to supply chain protection, where governments, international organizations, civil society and businesses work together to protect and promote robust supply chain practices. Three essential requirements include:
- The need for a common risk vocabulary;
- Improved data and information sharing across supply chain actors; and
- Building greater agility and flexibility into resilience strategies
The Initiative goes on to define four components needed for a global resilience framework, and proposes the following be taken into account by international governing bodies as well as multinational corporations:
- Partnerships: harmonize, develop and adopt resilience standards
- Policy: create a multi-stakeholder risk assessment process
- Strategy: develop adaptable strategies for supply chain resilience
- Information Technology: use and expand data sharing platforms
The Center for Responsible Enterprise and Trade, CREATe.org, helps companies improve business practices across global supply chains to reduce risks and meet international standards of safeguarding intellectual property and preventing corruption. The CREATe approach is practical, scalable and cost-effective for multiple industries and geographies. It includes online assessments, training, and other resources designed to benchmark and improve management processes. We invite you to learn more and Join CREATe.
Download the Executive Summary and Full Report here
Learn more about CREATe Leading Practices by e-mailing firstname.lastname@example.org for a free demonstration.