Supplier risk management is in flux. Following black swan events like the Covid-19 pandemic and tariff disruption, many firms are rethinking and rebuilding their approach to supplier risk management so it not only advances resilience but is also more cost-conscious. And time is certainly of the essence.
This eBook by Moody’s knowledge leaders delves into the concept of value at risk (VaR) in supplier risk management—setting out how it can be used to make smarter and data-led supply chain decisions.
While commonly used in financial analysis, VaR can help firms determine whether a risk mitigation strategy represents value for money compared to the potential revenue losses should supply chain disruption occur.