Supply chain risk exposures are varied & numerous; they can take various forms, occur at different times & at different places, have profound or little affect on businesses, be obvious or not so readily identified, be easily or not so easily risk managed, insured, uninsured or simply uninsurable.

Many types of risk pose a potential threat to a company; they can negatively impact its assets, cash flow, profits, the goodwill of suppliers & customers, the reputation of the business & even its ongoing existence.

In a contemporary business environment involving international trade & extended supply chains, most companies know that identifying & understanding risk exposures is very important.

Various types of insurance cover are available to importers & exporters who seek to mitigate the effect of risk exposures. An increasing number of companies appreciate that other forms of risk transfer options exist & that uninsured risks can be more dangerous than insured risks.

Understanding what risks aren’t covered by insurance, & properly managing those risks, is a critical step in the risk management process.