In recent years, a raft of events – including the Covid-19 pandemic, as well as geopolitical tensions and conflicts – have only highlighted fragility of global supply chains.
In response, firms are rethinking their approach to supplier risk management so that it not only advances resilience, but is more cost-conscious. Against this backdrop, Moody’s sees an opportunity for the concept of Value at Risk (VaR) to come to the fore.
VaR can help organizations to determine whether their risk mitigation strategies represent value for money when compared to the potential revenues losses in the event of a supply chain disruption.
Moody’s latest eBook explains the critical role that enterprise data can play in helping to unveil value at risk, and provide real-world examples of how VaR can be practically applied in order to help maintain supply chain performance and resiliency.
