Business continuity management – addressing supply chain risk
Natural disasters, hacker attacks or disruptions in the supply chain – lots of things can cause interruptions to regular business operations and impact every company. This is especially true as competition becomes increasingly globally connected.
In today’s volatile and often unpredictable environment, companies function like a living organism: they can adapt to the challenges of the market and protect their value chain by means of individual resistance. The prerequisite for this is a strong immune system that increases their resistance to external dangers and risks. Typical examples include building up buffer capacities in production, inventories or cooperation that extends beyond the supply chain.
Business continuity management (BCM) is an effective process to further strengthen the immune system of a company. BCM is based on proactive planning, so that crises do not hit companies unprepared and value creation remains largely assured even in the event of an emergency. It is important to not only examine your own processes for risks, but also to consider risks in the supply chain. This is where supply chain management comes into play. Digital tools and analyses can be used to identify and secure risks.
Learn more about business continuity management
Phases of the BCM process
Funk supports companies throughout all project phases of business continuity management (BCM) and facilitates the corresponding certification under applicable standards such as ISO 22301. This requires that BCM is set up as a rolling life cycle.
Link: https://www.funk-gruppe.de/en/corporate-blog/risk-management/business-continuity-management/
Funk SMART BI CHECK provides clarity
In a world of connected supply chains, business interruptions (BI) can cause significant financial damage. The management should therefore be aware of the worst case scenario and obtain protection with a business interruption insurance that is tailored to the individual company.
Link: https://www.funk-gruppe.de/en/corporate-blog/risk-management/funk-smart-bi-check-provides-clarity/
Case study: when the authorities shut down the factory
An explosion at a Schill + Seilacher plant caused extensive material damage. The result: business interruptions that lasted for years. Funk succeeded in getting the insurer to approve an immediate payment of 6.5 million euros for the financing of initial measures on the very first day of the claims negotiation.
Link: https://www.funk-gruppe.de/en/corporate-blog/insurance-management/when-authorities-stop-production/
Clever protection of risks using supply chain management
Funk provides professional and personal support to companies from a wide range of industries in dealing with specific supply chain risks We develop suitable measures for managing these risks, so that damage to the company does not become an existential threat.
Link: https://www.funk-gruppe.de/en/services/risk-management/supply-chain-management/
Study on disruptions in the supply chain
Cooperative risk management can reduce the implications of supply chain disruptions. , This is shown in a recent study by Jacobs University Bremen, which was conducted with the support of the Funk Foundation. But only a few companies have so far made use of this possibility of cooperation in the event of a crisis.
Supply chain risks put to the test
Only efficient risk identification enables targeted and effective risk prevention. Funk therefore supports companies with various services for a more detailed analysis of the various risks of their supply chain, for example with a risk stress test of the balance sheet and a supply chain quick check.
Link: https://www.funk-gruppe.de/en/corporate-blog/risk-management/supply-chain-risks-put-to-the-test/
Risks
Liability risks
The potential liability of companies varies depending on the industry or clientele. Nevertheless, all companies have one thing in common: even small mistakes can lead to severe losses.
Property damage and BI risks
While property insurance is a basic protection every company should have, the risk of business interruption is increasing steadily as well – especially for globally connected players.
Risks in M&A processes
The M&A market is booming: in a constantly changing market environment, transactions are the key to the success and future viability of companies. But their risks should not be underestimated.
Services
Funk China
Investing and operating outside of China becomes more and more essential for Chinese companies. The Funk China Division supports its Chinese clients in managing the risks, challenges and chances of worldwide outbound investments.
Insurance + risk management
Funk devises and implements holistic risk and insurance solutions for companies across all industries, sectors and countries. In doing so, our experts do not only secure your individual assets but also create genuine added value for your company.
Employee health + benefits
Employee benefits concepts are a sustainable component of a good corporate policy. Funk provides comprehensive, transparent advice with a view towards the long-term advantages for your company and your employees.
