How does buying insurance for supply chain risk factor into your risk mitigation approaches? Requiring a certain level of insurance might motivate firm's to choose to mitigate their biggest supply chain risks to reduce their insurance premiums. This can also be true for cybersecurity insurance and collaboration between the insured and insurer.
The issue with insurance and other purely financial instruments is that they don't solve the core problem the supply chain is trying to solve: matching supply and demand. Most firms already buy insurance.
How does buying insurance for supply chain risk factor into your risk mitigation approaches? Requiring a certain level of insurance might motivate firm's to choose to mitigate their biggest supply chain risks to reduce their insurance premiums. This can also be true for cybersecurity insurance and collaboration between the insured and insurer.
The issue with insurance and other purely financial instruments is that they don't solve the core problem the supply chain is trying to solve: matching supply and demand. Most firms already buy insurance.