Supply Chain Risk Management

Operational Risk • 137

market obsolete. Unknown risks could also be a re that destroys a plant,

an attack on a plant, a weather event, and from Table7.3, areas such as time

delays or any unforeseen disruption. An eective way to respond to these

risks is to develop and practice response scenarios, what we call business

continuity planning (BCP). e disconcerting aspect of so risks is that

most companies do not develop or practice scenario response plans or risk

response plans. In fact, as you scan down the traditional remedies column

for the so risks in Table7.3, you will notice that almost all are reactive

rather than proactive.

Chronic Risks. e primary characteristic of chronic risks is that when

these occur they tend to cause only m ...