the report also highlights an array of threats that may become particularly salient for businesses in 2019 and beyond. in addition to ongoing global risks like the international tensions that characterized trade in 2018, companies may also face additional costs and uncertainty due to raw material shortages, recalls and safety scares or tougher environmental regulations. first, rising demand for raw materials, coupled with a fragile supply caused by political instability and supplier shutdowns, may result in raw material shortages for crucial materials such as lithium, cobalt, and adiponitrile. second, recalls and safety scares may increase, as wider public awareness of quality issues and stricter enforcement by regulators in highly regulated sectors such as pharmaceuticals and medical devices subject products to higher scrutiny. lastly, anti-pollution measures may be expanded in 2019 to a broader range of industries across asia. the us environmental protection agency is also expected to announce new requirements. as a result, tougher environmental regulations will increase costs for businesses in a number of industries. all of these developments have the potential to put suppliers under threat and force significant changes throughout supply chains.
“modern supply chains are vulnerable. transportation delays, theft, natural disasters, inclement weather, cyber-attacks and unexpected quality issues can disrupt cargo flows, creating short term costs and delivery challenges,” adds shehrina kamal, director risk intelligence, resilience360. “resilience360 strives to understand these risks and gain a common understanding of how they impact supply chains across countries, regions, industries and organizations in measurable ways.”
