Businesses all over the world are increasingly affected by various types of risks. The Supply Chain Risk Leadership Council (SCRLC) has published a report with the aim identify and plan for the risks that may have a major impact on the operations of organizations.
The report highlights that climate change is “creating a number of different issues which threaten supply chains,” adding that “there have been unusual flood events in certain parts of the world and droughts in other areas. The impact has been seen in agricultural production in 2012 with the issues in the US and Europe due to the different extremes of the weather with in one case there being too little rain and in the other there being too much.”
Other major climate risks to supply chains that were noted in the report include:
- Winter storms bringing delays thanks to snow and ice;
- Climate driven populations shifts and geopolitical impacts; and
- Regulatory changes.