Is Your Supply Chain Protected from Terrorism
Your business may be ready for fluctuations in the availability of raw materials, the ramifications of labor disputes, and the hardship of an economic downturn, but does your risk management awareness include protecting your supply chain from a terrorist attack?
It may be more common to think about the personal effects of terrorism, but, in actuality, the principal goals of many terrorists include disrupting the business and industry of a country or region. Anti-terrorist organizations have discovered plans in the past to focus on majorly disabling supply chain targets.
A coordinated attack on an oil’s supply chain could impact all civilized nations and deal a crippling blow to the global economy
So, what might be the results of a major terrorist attack on a significant supply chain target or group of targets? Experts have held up the oil industry as one noteworthy illustration, pointing out that a coordinated attack on an oil's supply chain could impact all civilized nations and deal a crippling blow to the global economy.
According to statistics from the U.S. Energy Information Administration and the International Tanker Owners Pollution Federation, roughly half of the world's oil output is carried by tankers among fixed ocean routes, and more than 51 million barrels move through only eight chokepoints every day. In fact, more than 60% of the oil travels through two chokepoints, the Strait of Hormuz and the Strait of Malacca, each day. A stoppage in either of these routes would certainly cause a major interruption to the oil's international supply chain.
And it's not only a maritime concern, or only oil, for that matter. There are many coastal and inland freight hubs that might make an appealing target for a terrorist intending to severely disrupt the global supply chain.
How, then, is a company or organization able to sidestep such a disaster? It comes down to risk management awareness and thinking about what have been called high-impact,low probability threats. But it is not only awareness; the second, and ultimately critical, component is to cultivate strategies and means to safeguard your business interests on a global level.
While we all care about public safety first, it's necessary to remember the importance of protecting the supply chain from terrorism by implementing the proper procedures and protocols. Risk management awareness is of the utmost importance, and NC4's Risk Center™ can aid you in making sure you accomplish that number-one goal.
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