Black Swan events are by their nature, impossible to predict, and thus horribly difficult and expensive to defend against. To credibly prepare against every possible scenario, you would need to take a very wide range of precautions. Unfortunately, these “rare occurrences” also seem to be happening with greater frequency, and their impacts much more far-reaching. When you consider how connected and vast our global supply chains are, relatively small, unpredicted events can have significantly exaggerated impacts on activities downstream.
Consider the current worldwide crisis caused by the novel Coronavirus, COVID-19. Severe interruptions in manufacturing and logistics are coupled with travel disruptions and wildly divergent consumer behaviors. It’s a double whammy, where product availability is unknown in terms of timing and volume, and demand behaviors are constantly changing as the situation evolves.Read Now >