Supply Chain Risk Management

102 • Supply Chain Risk Management: An Emerging Discipline

and processes on a regular basis as supply chains become more uncertain

and complex.

Summary of Key Points

• Traditional hazard risk pertains to random disruptions, liability torts,

property damage, and natural disasters that are outside of our control.

• Many of these traditional hazards can be mitigated through the pur-

chase of insurance coverage.

• Many insurance packages are in existence today that cover risk events

such as credit, political risk, property, trade disruption, and logistics.

• Many of these risk transfer instruments will compensate compa-

nies for loss of prots, supplier insolvency, payment default, contract

issues, expropriation of assets, property replacement, con ...