found in U.S. operations are present in overseas operations.
But a few more exposures are unique to the global supply
chain.
SPREAD OF RISK
U.S. companies tend to become overly dependent on only
one or a few sources of offshore production. Vulnerability
exists if this source is lost as a result of acts of God, political
or economic distress, or another event. How does a company
replace that primary production facility’s output? Is it even
possible on short notice? How long will it take to find op-
tions? How will those options work? What will the financial
consequences be? It is much better to have evaluated these
risks proactively and provide a spread of risk in the com-
pany’s sourcing options so there are existing, accessible op-
tions in place.
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