Supply Chain Risk Management
Why Supply Chain Risk Management Matters
Supply chains are complex ecosystems and their complexity keeps increasing meaning that the risks associated with them are ever more interconnected. Challenges caused by events such as natural disasters, geopolitical instability, supplier insolvency, cyber-attacks and reputational crises can disrupt supply chains and threaten financial performance.
A single disruption can have far-reaching consequences, affecting not only your organization but also customers, partners and investors.
That’s why building resilience into your supply chain is essential. A proactive approach to supply chain risk management can assist in achieving business continuity, help to protect your balance sheet and maintain stakeholder trust.
Aon’s Integrated Supply Chain Risk Management Solutions
Aon offers an integrated, client-centric package of solutions, each addressing a critical aspect of supply chain risk management. Together these solutions provide a robust foundation for identifying, assessing and mitigating risks across your entire supply chain ecosystem.
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1. Supply Chain Mapping and Supplier Intelligence
Gain deep visibility into your supply chain. Using advanced analytics, Aon helps you to identify concentration and accumulation risks, examine supplier dependencies and prioritize critical suppliers. This mapping enables you to understand where vulnerabilities exist and where targeted interventions can have the greatest impact.
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2. Impact Analysis
Evaluate dependencies and quantify related risks. Through scenario analysis, Aon can provide your management with a clear picture of supply chain disruption risks to your business, and the likely financial and operational impacts, enhancing risk awareness and understanding. This supports the development of risk management, business continuity and insurance strategies tailored to your specific needs.
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3. Supplier Enterprise Risk Assessment
Move beyond traditional risk assessments by leveraging Aon’s AI-powered Risk Indicator tool. Build insights on supplier solvency, political risk, sanctions, labor practices, and ESG exposures—even where traditional loss data is limited. Assess risk likelihood, impact, and velocity to shape appropriate mitigation and management strategies for key suppliers.
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4. Supply Chain Resilience and Continuous Improvement
Deploy targeted risk management programs to build and sustain resilience. Aon’s global network of risk professionals enables supplier risk audits, property risk assessments, business continuity stress testing, and loss prevention surveys. These activities strengthen your suppliers’ operations and help ensure business continuity in the face of disruption.
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5. Supply Chain Risk Financing
Optimize risk capital to offset balance sheet exposure. Aon provides access to a full range of risk financing solutions, including Contingent Business Interruption Insurance and Trade Disruption Insurance. These tools can protect against financial losses stemming from supplier or trade disruptions. Alternative Risk Transfer Solutions such as Captives and Parametric solutions can offer flexible, transparent coverage and rapid payouts based on pre-defined triggers.
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6. Continuous Review and Improvement
Supply chain risk management is not an one-time exercise. Regularly assess and refine your strategies to keep pace with evolving threats and opportunities. Aon’s proprietary peer benchmarking and industry data help you measure improvements, compare results and update your approach for ongoing resilience.
The Power of Predictive Supply Chain Risk Intelligence
At the core of our supply chain solution is the AI-powered Aon Risk Indicator tool, which analyzes more than 80,000 data sources from over 200 countries. This platform provides predictive risk intelligence, scenario modeling and reputational risk analysis, empowering businesses to anticipate, withstand and recover from supply chain disruptions.
Key Features of Aon’s Risk Indicator Tool
- Predictive Emerging Risk Intelligence: Frequency analytics reveal how risk events occur across sectors and geographies, enabling you to anticipate trends and vulnerabilities.
- Reputational Risk Analysis: Assess risk concentration and financial impact, including shareholder value implications.
- Continuous Monitoring: Standardized analytics uncover underlying causes of supply chain and business interruption issues, supporting ongoing risk management.
- Scenario Analysis: Quantify the expected impact of disruptions, supporting informed decision-making for business continuity and insurance strategies.
Supply Chain Risk Diagnostic
Get a clear picture of supply chain disruption risks to your business.
Aon’s Supply Chain Risk Diagnostic Tool and analytics drive visibility across the supply chain ecosystem, so you can better identify and quantify your risk exposure.
Interconnected Risks Demand Integrated Supply Chain Solutions
Aon’s holistic approach combines risk transfer strategies derived from industry-specific best practices with supply chain risk consulting, dedicated reputational risk consulting and business interruption evaluation.
When a loss event occurs, Aon’s global claims services can help you respond rapidly, helping to minimize the operational impact and mitigate any related financial consequences.
Aon’s integrated supply chain risk management capabilities offer:
- Tailored, integrated solutions for your unique supply chain risks.
- Advanced analytics and AI-powered tools for deeper visibility and predictive intelligence.
- Global capabilities which combine local risk mitigation measures with global risk transfer and risk financing solutions.
*The information contained on this page is subject to the terms and conditions found on our website.*
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