Supply Chain Risk Management

30 • Supply Chain Risk Management: An Emerging Discipline

and complex. e researchers also concluded that most companies are

ill- prepared to manage this complexity and that risk management will be

a critical success factor aecting corporate success.

We also saw two more reports explicitly targeting supply chain disrup-

tions and their nancial impacts. Chainlink Research and Hendrick &

Singhai had been working on attempting to codify the nancial impacts

of supply chain disruptions on company bottom lines. According to these

resources, a publicly traded company that experiences a moderate to

severe supply disruption should expect to realize a 107% drop in operating

income on average, 114% drop in return on sales, 93% drop in return on

ass ...