Supply Chain Risk Management
The next time you have a bucket of water, try to release a single drop of water into the bucket without generating a ripple. You will notice how ripples immediately oscillate back and forth for quite some time. The ripples reach all the way to the sides of the bucket and bounce back, resulting in an infinite number of waves. The bucket represents the world of global trade; the water an infinite number of supply networks that support the movement of materials, products, cash and information. An event (the “drop”) such as a catastrophic failure at the ports in Singapore (through which more than 50% of the world’s goods is shipped), could initiate an economic tidal wave.