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.