In today’s ever-changing business environment, companies are confronted with numerous challenges. Traditional advantages such as economies of scale are increasingly undermined by supply chain disruptions or dynamic network effects, threatening secure market positions.

No supply chain is 100% crisis-proof. This is demonstrated by the consequences of the conflict between Russia and Ukraine. In February 2022, the political situation between the two countries had escalated to such an extent that Russia invaded Ukraine militarily. This is currently causing not only terrible humanitarian problems, but also economic consequences that are being felt in Europe and the United States, among other places. More and more global supply chains are in danger of collapsing, both because of the military-related loss of Ukrainian business partners and because of international sanctions against Russia and Russian companies.

Unexpected challenges can hit global trade at any time. This was proven once again by the “Ever Given” accident. Since Tuesday night, the container ship has been blocking the Suez Canal and thus one of the world's most important trade routes. Already strained supply chains are further strained, while an end to the blockade is not in sight.

Many parts of the globe continue to witness unprecedented social and political unrest, natural catastrophes and force majeur like the Covid-19 pandemic. Thus, Supply Chain risk management has become a more critical process for firms to safeguard their long-term success.
