DHL outlines risks to businesses in 2019

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The report is based on the experience and insights of in-house analysts who monitor hundreds of risk events each day to help companies proactively manage disruptive events, from political violence to cargo theft, and minimize business interruption.

“The Resilience360 Annual Risk Report sums up our expertise to our customer’s benefit in a very comprehensive way. Risk assessment and building up supply chain resilience is a crucial part of our customers’ business. Wherever they operate, the report’s insights will make the re- evaluation of the respective risk environment easier and thus complement the existing Resilience360 offer,” said Tobias Larsson, CEO Resilience360.

The report highlights an array of threats that may become particularly relevant to businesses in 2019 and beyond. In addition to ongoing global risks like the international tensions that characterized trade in 2018, companies may also face additional costs and uncertainty due to raw material shortages, recalls and safety scares or tougher environmental regulations.

Rising demand for raw materials, coupled with a fragile supply caused by political instability and supplier shutdowns, may result in raw material shortages for crucial materials such as lithium, cobalt, and adiponitrile.

Recalls and safety scares may increase, as wider public awareness of quality issues and stricter enforcement by regulators in highly regulated sectors such as pharmaceuticals and medical devices subject products to higher scrutiny.

Anti-pollution measures may be expanded in 2019 to a broader range of industries across Asia. The US Environmental Protection Agency is also expected to announce new requirements. As a result, tougher environmental regulations will increase costs for businesses in a number of industries. All of these developments have the potential to put suppliers under threat and force significant changes throughout supply chains, says the company.

“Modern supply chains are vulnerable. Transportation delays, theft, natural disasters, inclement weather, cyber-attacks and unexpected quality issues can disrupt cargo flows, creating short term costs and delivery challenges,” added Shehrina Kamal, director Risk Intelligence, Resilience360. “Resilience360 strives to understand these risks and gain a common understanding of how they impact supply chains across countries, regions, industries and organizations in measurable ways.”

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