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In Summary – As Global Tensions Continue to Rise, How Will Supply Chains Fare?

Disruptions to the global supply chain, made vulnerable by COVID and destabilized by war, could be exacerbated by Russian sanctions.

Below is a summary. Additional details are outlined in the full article, published by Risk & Insurance. Read Full Article

As the conflict in Ukraine continues to unfold and the world anxiously awaits a peaceful resolution, the effects of Russia’s aggressions are reverberating around the globe.

Key takeaways:

Impacts of Sanctions & Shortages | With billions of dollars removed from the Russian economy by sanctions, shipping embargoes, and the voluntary closure of corporate operations, limited production of critical resources the region is adding to the current economic pressures.

Revisiting Political Risk Insurance | Firms have been too complacent in terms of risk analysis. Political risk insurance can help offset some of the financial losses, but needs to be applied beyond regions deemed high-risk if it is to help in situations like this one, where Russia was extricated from the global supply chain in a matter of weeks.

Insurance Alone is Not the Solution | Proactive risk management must become part of every operation’s business framework.

Read the full article on Risk & Insurance

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