Every day we are bombarded with news of politically charged events happening around the world. Have you ever wondered how these events can affect the products your company develops and the supply chains that help manufacture them?
As John Muir once said, “When we try to pick out anything by itself, we find it is hitched to everything else in the universe.”
There is a macro and a micro to everything. Raw material prices spike when there are infrastructure breakdowns, shortages, and country-level trade issues. Civil unrest and unexpected wars can cause trade embargoes between countries whose economy depends on raw materials from their new enemy. Worker rights issues manifest into human rights violations and brand management issues. Upcoming elections cause changes in government policies making it more difficult to produce your product. Inadequate conditions for fire and factory safety, as well as, poor management by suppliers can trigger incidents resulting in deaths.
From natural disasters to government shutdowns to civil unrest and war, every action has an opposite and equal reaction. Every lurking risk is waiting for its mitigation plan.
Building CSR Risk mitigation strategies that protect your business is our business at BlueCircle Advisors. We can help you identify problems before they start and prevent them from happening in the future.
Next time you read about a current event somewhere in the world, spend a few seconds contemplating the event in light of John Muir’s quote and try to imagine how this affects your products and supply chain.