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7 Key Factors to Short-Circuit Risks

Burn your problems to a figurative crisp. Ken Tysiac identifies seven factors that allow companies to position themselves like Nissan, who not only survived severe supply chain damage during the Japan tsunami disaster in 2011 but even managed to end the year with a 9.3% rise in production. Here are the seven shocking factors for zapping risk:

  1. Risk governance
  2. Flexibility and redundancy
  3. Alignment between partners in the supply chain
  4. Upstream and downstream supply chain integration
  5. Alignment between internal business functions
  6. Complexity management/rationalization
  7. Data, models, and analytics

Flexibility is really at the heart of managing risk, and Nissan has exemplified it recently. They identified, analyzed, and enacted countermeasures to risk at a great speed. They deployed a preexisting earthquake response plan, gave management the ability to quickly execute decisions on the local scale, and practiced good coordination between internal and external business functions. Alignment is really critical when disaster strikes, and though your supply chain may not be threatened by any tsunamis, remember that you never know what the tide might bring.

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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