Until relatively recently, business continuity management for most companies focused primarily on the risks associated with IT failure or the loss of a building. The increasing reliance upon outsourcing in a more global business environment, however, has pushed supply chain risks firmly onto the business continuity agenda.
For many organisations, the supply of raw materials, manufacturing processes, and product storage are now regularly outsourced. Even those functions that were traditionally considered in-house activities, such as finance, purchasing, internal auditing, HR and occupational health are now considered outsourceable activities. In this supply chain-reliant environment, the loss of just a single critical supplier can have a devastating impact on a company.