Business continuity planning is an area most organisations consider but only realise the importance when its too late. As 2025 draws to a close and many of us turn toward the seasons festivities, it is an important time reflect and consider how well you are prepared for planned and unplanned disruptions.
For those in the retail space, inventory levels are rising as shoppers make their way into storefronts and online market places to secure gifts and bargains alike. Today, global trade operates on the premise of just in case stock piling goods and materials for supply chain shocks – a stark contrast from the pre-COVID era of just in time trade.
As the global shift is well underway from just in time to just in case inventory management, unplanned supply chain disruption continues to remain a significant issue for organisations throughout the world. This is where business continuity planning makes a difference
On November 5, Global Trade Review published a wide ranging article on the shift in the supply chain landscape. Global insurer Swiss Re estimates that global supply chain disruptions now cost businesses US$184bn annually in disruption costs with consulting firm McKinsey highlighting that a single major disruption can cause companies to lose up to 42% of their annual earnings before interest, taxes, depreciation and amortisation.
While it is simple to point the finger and say supply chain risks does not apply to me, the concept of knowing and planning for disruption can make the difference to a return to success or protracted period of pain.
Manufacturers, facility operators and producers of raw materials operate complex internal supply chains. Commencing at the start of the production line, products can move from raw or semi-fabricated materials to complex final products. These processes often require the use of complex equipment, fluctuating staffing levels and stock piles in limited and confined spaces.
Fires, unplanned mechanical failures, staff absence – all of these ultimately end in one outcome. Unexpected financial loss.
These events are not limited to the disruption of physical supply chain goods. Cyber security systems remain points of vulnerability that hold the potential to cause extended disruption to daily operations. Organisations with a heavily reliance on data center capacity, such as e-commerce providers, remain vulnerable even at arms length. The recent Cyrus One outage, caused by a failure of the cooling system, led to the worlds largest exchange operator CME need to suspend trading across stocks, commodities and bonds. The event highlighted not only the exposure that is faced by organisations of all sizes, but the impact of reliance on single suppliers.
In any circumstance, ensuring you are prepared will be the difference. At Blackwall Insurance and Risk Advisory, our team are experienced in working with organisations to identify, assess and develop business continuity plans that enable you to get back to what you best – faster. Speak with out team today to find out more.
