Which of the following actions is most effective in protecting against unknown risks?
Which of the following actions is most effective in protecting against unknown risks?
Building the appropriate level of redundancy in the supply chain is most effective in protecting against unknown risks. Redundancy provides flexibility and resilience, ensuring that if one part of the supply chain fails due to an unforeseen event, other options are available to continue operations. This approach doesn't rely on predicting specific risks but instead prepares for a range of potential disruptions, making it a robust strategy against unknown risks.
Building redundancy in the supply chain can help protect against unknown risks by providing flexibility and resilience. This may include having multiple suppliers, maintaining safety stock, or having backup production capacity. While it's impossible to predict all unknown risks, creating a resilient supply chain can help mitigate their impact when they arise.
Build the appropriate level of redundancy in the supply chain.