Fisher College of Business Associate Professor John Gray in a column for our sister center The Risk Institute tackles the looming threat of the “100-year event” for a company’s supply chain, which could range from a tsunami to a nuclear disaster or factory fire.
The problem with these so-called 100-year happenings, he writes, is that they can come around a lot more often for companies with global reach. A company operating in 30 independent regions, for example, has a more than one-in-four chance of having a 100-year event in any given year.
Prof. Gray looks at a recent supply chain disruption for COE member Greif Inc., an industrial packager that shut down a plant in Turkey after a takeover by alleged political radicals. Greif, it’s important to note, has a well-structured risk management system in place, reinforcing the notion, Gray wrote, that “you can do everything right and will still experience adverse events.”
Read the full article over at the Risk Institute’s blog.