The law of unintended consequences T he Tianjin port disaster in August was the worst sort of accident waiting to happen. The fallout revealed allegations of collusion to store hazardous chemicals. Absent paperwork, which could have told firefighters what chemicals they were dealing with. The avoidable death of at least 160 people. A long period of supply chain disruption and logistical delays for companies with ties to the port. Tianjin is the most recent example of how a chain of consequences can snowball out of any individual organisations control. This issue of RMP is all about getting to grips with the multiplying risks and opportunities of todays increasingly complicated supply chains. Supply chain management, like cyber security, is now a permanent feature of doing business. The Business Continuity Institutes recent report shows more than threequarters of respondents have suffered at least one supply chain disruption over the previous year. Thats costly, and not just in terms of business continuity. The impact of loss of market share, customer confidence and reputation can affect a companys bottom line for years. The demands of supply The good news is that none of this is inevitable. IRMs Extended Enterprise: Managing risk in complex 21st century organisations has plenty of examples of organisations that have cracked this particular nut. What runs through them all is a commitment to sourcing responsibly throughout the extended enterprise. On this page we look at practical and proportionate steps organisations can take when sourcing at key supply points, and how to make the critical distinction between volume of spend and value at risk. A couldnt happen to us mentality is a threat to resilient supply chains in its own right. On this page, we explain the importance of ensuring your suppliers analyse a far wider range of business continuity risks than may currently be the case. The impact of the Fukushima disaster highlighted the complexity of modern supply chains. Here, we look at the latest risk transfer options available to companies in the aftermath of such disasters. We also anticipate the buzz around the flagship Risk Leaders and Global Risk Awards coming up soon, and bring you up to speed on the latest developments from IRM HQ. Enjoy the magazine. Sush Amar Managing Editor RMProfessional