Skip to content
Article

Risk-Management Considerations Amid Continuing Supply-Chain Pressures

June 21, 2024 | 1 minutes reading time | By Dawn Kissi

The causes and effects – and ultimate business impacts – are macroeconomic and geopolitical.

Supply-chain vulnerabilities existed before the trade disruptions and inventory shortages attributed to the pandemic outbreak early in this decade, but the concerns are no longer just about shipping and logistics.

Subsequent, largely geopolitical developments have since only magnified how supply chains impact macroeconomic factors such as inflation and how they must be broadly factored in to business plans and risk assessments.

As a March shipping-industry analysis by Fitch Ratings noted, “We do not believe that the Red Sea disruptions [following military attacks] or those in the Panama Canal due to drought point to a structural shift in the sector, although they could keep freight rates higher for longer.” Fitch viewed “the nature and implications of these disruptions [as] significantly different from those in 2021–2022, which were related to broader supply-chain issues, including port congestions, a pandemic-related decline in port efficiencies and container dislocations.”

Meanwhile, trade balances are in flux, in part from what Laura Alfaro of Harvard Business School and Davin Chor of Dartmouth’s Tuck School of Business...

to access this content.

Become a GARP Member to Unlock Exclusive Risk Insights and More!

  • Access timely articles, thought leadership, and an archive of on-demand webcasts, event recordings, and Chapter meeting presentations in our Member Multimedia Library.
  • Get regulatory capital data for global and regional banks in North America, Europe, Asia, and Africa through our Pillar 3+ data analytics platform from the GARP Benchmarking Initiative (GBI®).
  • Gain priority registration to attend any worldwide Chapter meeting for free, as well as preferential rates for GARP events and access to local members-only dinners and professional networking opportunities.
  • Receive comprehensive access via our digital GARP Learning platform to the latest curriculum readings, videos, end of chapter practice questions, and more for the program(s) of which you passed the exam(s).

Topics: Resilience

Trending