In March, a large container ship blocked the Suez Canal for six days, costing nearly $400 million an hour in global trade losses. Now, cargo and vessel owners are asking, “Who foots the bill?”
As supply chains continue to lean into a digitized marketplace, it is imperative that risk managers view every potential threat that could manifest into a true cyber catastrophe.
In their annual risk report, Allianz reported that the risk of pandemic outbreak skyrocketed to the top of 2020’s largest risks. Other risks that are usually ranked high, including business interruption and cyber risk, became even more prominent amid COVID-19.
Despite Amazon having its most successful shipping day in history, insurers are still grappling with the risks stemming from the conglomerate’s need for speed.
Global supply chains were once thought a way to reduce both risk and cost. With tariffs and sanctions on the rise, those far-flung networks suddenly seem exposed.
Uncertainty in international trade, the rising popularity of product boycotts and the dominance of Amazon in the e-commerce market are just some of the risks retailers should keep on their radar.
Distributed ledger technology has the potential to improve supply chains worldwide and to minimize product recall losses. Now is the right time to prepare for widespread adoption.