Is your supply chain in good working order?
Several macro and micro-economic factors affect businesses in the manufacturing sector. Globalization of commercial exchanges has redefined business models and entails an increased interdependence between international partners, not only regarding the development of new markets, but also sources of supply for raw material, logistics, technology, semi-finished goods, etc.
Need for special attention
Henceforth, companies must pay careful attention to not only risks which may cause a business interruption at their own locations but also physical risks that may arise at their commercial partners’ locations which may reduce or stop those operations and consequently yours.
Your property and equipment breakdown insurance should protect you against risks insured for your company and against an identical loss occurring at your clients/suppliers and which could have a negative impact on your revenues thereby hindering your profitability.
Furthermore, as a manufacturer, you could be faced with other risks, such as:
- Industrial espionage
- Environmental impairment risks
- International and political risks
- Currency fluctuation
- Contractual obligations
- Health and safety
- Patents
- Mergers and acquisitions
- And many more
In order to adequately manage these operational exposures, businesses must be able to identify and evaluate their own risks to then transfer the most part of those considered undesirable to third parties. We understand this is a complex analysis but it could be a valuable asset should a loss occur.
GPL and its business partners have developed methods of analysis which – depending on the complexity of your risk, your tolerance to risk and the internal resources available in your organization – will allow you to properly identify your exposure.
This newsletter is produced for your information only and constitutes neither an opinion on the stated coverage nor legal advice.