Understanding your Shippers’ Operational Security and Resilience Requirements
By Irvin Varkonyi, CSCP, P.Log.
Without risk, there is no reward. Today, risks are much more complex for both passenger travel and freight movement as we function in a global economy where the uncertainties of disruptive events must be factored into strategic planning. Successful companies must find the right balance of risk and operational efficiency to optimize their financial performance and sustain their operations to benefit shareholders, customers and employees.
This builds resilience which is the ability of an organization to mitigate the negative impacts of an event. Therefore a company cannot ignore the risk of deciding to off-shore its production to a hurricane prone region just because labor costs are cheap. Nor can a company avoid potential catastrophes by hunkering down and incurring unsustainable costs. Whether the disruptive event is a hurricane, a hazardous material spillage on a major highway or a potential act of terrorism, companies must plan for the unexpected.
This article from CNS Air Cargo Focus Magazine considers two major factors for a business to consider in the face of disruptive events:
- Understand the components in the trade-off among risk and efficiency – Develop metrics by which the enterprise can measure risk and reward. These metrics should also factor the impact of risk on efficiency, i.e. productivity of labor, reliability of transportation, etc.
- Understand the concept of Risk Management within Enterprise Operations – Risk is different from threats. Risk involves the possibility of a disruptive event. Threats are made up of the probability of an event and the critical impact of the event if it occurs. The enterprise must consider what risks it takes and have the ability to measure the potential threats which such risks may create.
Read the full article here. Go to page 10.
Irvin Varkonyi holds an MBA from the American Graduate School of International Management (Thunderbird) in Glendale, AZ and a B.A. in International Relations and Economics from Clark University in Worcester, Mass. He is a member and the Educational Chair of the National Capital Area Roundtable of CLM. He also holds membership and is the current chair of the Emergency Preparedness Committee of the Washington, DC Chapter of the National Defense Transportation Association.
Varkonyi is currently a program manager for transportation and logistic management degree programs at American Military University (AMU). At AMU, he also serves as an adjunct professor.
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