Resilinc Blog

Complexities are a reality in any industry and the automotive sector is no exception. The commonality of long lead times in this space will transition into shorter production cycles as shifting consumer expectations and the digital, connectivity era drive new automotive demand. Growth of the light vehicle assembly market and additional factory sites (67 of which will be located in Asia before 2020¹) are also factors many anticipate will challenge the automotive space. As a result of such changes, the automotive market may be open to new risks in their supply chain.

As various industries and companies are faced with their own unique challenges, it is important to weigh all the considerations when working to understand and address risk. Increasingly considering Contingent Business Interruption (CBI) insurance and additional supply chain risk management (SCRM) strategies are just some of the ways company leaders can focus on risk.

In this blog article, Brian Jenkins, Risk Financing Manager at General Motors, discusses GM’s strategy for CBI insurance to help manage supply chain risk.

To ensure effective supply chain risk management (SCRM) and best achieve the ROI that comes with such programs, companies must address all elements of their supply chain operations management. 

In our most recent videocast, Vonnie French, Vice President of Supply Chain Operations at Palo Alto Networks, discusses the company’s strategy for leveraging Contingent Business Interruption (CBI) insurance to help manage supply chain risk.

Resiliency is about protecting your supply chain from disruptive events and recovering quickly when a damaging risk turns your operations upside down. But, it’s much more than that. Resiliency is also about shielding your bottom line from long-term negative impact.

Interestingly, though, the return on investment (ROI) that comes with implementing supply chain risk mitigation strategies and resiliency solutions is sometimes overshadowed. Because companies often approach resiliency in a knee-jerk, reactive way and put business continuity plans in place only after a disaster strikes, there’s less time spent assessing the immediate and future financial benefits generated by a comprehensive risk management initiative.