the report also highlights an array of threats that may becomeparticularly salient for businesses in 2019 and beyond. in additionto ongoing global risks like the international tensions thatcharacterized trade in 2018, companies may also face additionalcosts and uncertainty due to raw material shortages, recalls andsafety scares or tougher environmental regulations. first, risingdemand for raw materials, coupled with a fragile supply caused bypolitical instability and supplier shutdowns, may result in rawmaterial shortages for crucial materials such as lithium, cobalt,and adiponitrile. second, recalls and safety scares may increase,as wider public awareness of quality issues and stricterenforcement by regulators in highly regulated sectors such aspharmaceuticals and medical devices subject products to higherscrutiny. lastly, anti-pollution measures may be expanded in 2019to a broader range of industries across asia. the us environmentalprotection agency is also expected to announce new requirements. asa result, tougher environmental regulations will increase costs forbusinesses in a number of industries. all of these developmentshave the potential to put suppliers under threat and forcesignificant changes throughout supply chains.
“modern supply chains are vulnerable. transportation delays,theft, natural disasters, inclement weather, cyber-attacks andunexpected quality issues can disrupt cargo flows, creating shortterm costs and delivery challenges,” adds shehrina kamal, directorrisk intelligence, resilience360. “resilience360 strives tounderstand these risks and gain a common understanding of how theyimpact supply chains across countries, regions, industries andorganizations in measurable ways.”
