A key aspect of the effort is identifying supply chain risks that may not be obvious as a growing web of outsourced services used by many companies require a comprehensive supply chain risk assessment in order to identify and evaluate potential risks and possible alternatives should an event occur, according to a press release.

The assessment and other data is then used as the basis for underwriting and pricing the risk for a policy with claims are managed by the Zurich Claims team and supported by specialist third parties where necessary.

“Many organisations are not aware who their key suppliers are, especially in the lower levels of the supply chain, and very few have visibility over their entire supply chain," said Hassan Karim, Technical Underwriting Manager, Zurich Asia Pacific.

"Half of supply chain disruptions occur beyond the preliminary supplier of goods, therefore making it extremely difficult to establish where an organisation lies within its suppliers’ priorities. Taking a holistic approach and identifying critical supplies is essential when working with customers to manage their exposures."

Citing a 2015 report, Zurich said 74% of organisations surveyed suffered from at least one disruption in the previous year, with 14% having suffered cumulative losses of at least US$1million.

APMEN Business News, Oct 2016