SCRS Conference Day 1 Session #7
How To Navigate Supply Chain Through this Recovery Period
Moderated by: Mr. Richard Hancock
Panelists: Mr. Mark Nuttall & Mr. Matt Lee
The Ukraine-Russia war has left a significant impact on the country, with efforts now focused on returning to normalcy and resuming daily lives. Sectors such as grain production, renewable energy, manufacturing, and technology are being prioritized to rebuild the economy. However, “one of the major challenges faced is the mobilization of male workers into the military, leading to a loss of manpower in various industries” said Mr. Richard Hancock. There is now a need for careful planning on how to address this issue and ensure continuity in supply chains. Additionally, the impact of broader geopolitical issues on the situation is being taken into consideration, with a focus on finding effective solutions and maintaining stability.
Major multinational companies have experienced a significant reduction in their operations, production, and financial activities since the pandemic. This led to a mass labor migration, as workers returned to their home countries due to job losses and travel restrictions. In response to these challenges, some companies have opted to downsize and transition into franchise models that focus on local markets and territories, and increasingly rely on Artificial Intelligence (AI) for improvement on supply chain processes during this recovery phase.
Path Towards Frictionless Supply Chain with AI Automation
Mr. Matt Lee, Corporate Security Director of Dell Technologies and Vice-Chairman of TAPA APAC, believes a frictionless supply chain is to incorporate automation into the supply chain process while still maintaining the human element. However, it is crucial to manage AI effectively as it can move quickly, efficiently, and even dangerously if left unchecked. “The concept of AI is not new, but it has undergone significant evolution in the past 50 years, leading to a revolution in the last year,” said Matt. The speed and pace at which AI is advancing is remarkable, but it also brings along potential dangers.
To ensure a smooth and secure integration, safeguarding measures need to be put in place. These measures can involve implementing robust data protection protocols, conducting regular audits and risk assessments, and providing comprehensive training programs to equip employees for the changes brought about by automation.
Balancing Cost and Risks of AI Adoption
Instead of striving to balance the cost and risks of AI adoption, a more effective approach would be to harmonize them. “Rather than solely focusing on the amount we are spending, we should consider whether we are investing in the right areas and safeguarding what is truly valuable to us,” Matt said. In order to achieve this harmonization, it is essential to conduct a thorough risk assessment using the 3As Concept – Asset, Adversary, and Action. By aligning our risk management practices with our business objectives, we can ensure that our resources are utilized optimally, leading to a more secure and prosperous future.
Emerging Concerns on Usage of AI
AI will soon become an integral part of our global society, prompting the question of whether it is a significant component of globalness. One aspect of AI that has gained attention is Generative AI, where the information generated can be unclear and muddled. With its rapid advancement and widespread implementation, AI has revolutionized various industries, from healthcare and finance to transportation and entertainment. Its ability to analyze vast amounts of data, learn from patterns, and make predictions has greatly enhanced efficiency but at the same time, created significant risks for supply chains.
Fake Narratives: Verification & Accountability on AI-Powered Content
Richard raised a valid concern regarding the potential problem of AI feeding on fake news. The lack of effective checks and balances to determine the authenticity and accuracy of news poses a significant challenge. In order to address this issue, it is imperative that we establish robust systems of verification and accountability. The implementation of reliable fact-checking mechanisms can help distinguish between genuine and misleading news sources.
Data Quality Threatens the Integrity of Insights
Mr. Mark Nuttall seconded on Richard’s point, “Are you going to put your supply chain in the hands of AI that you are not sure about?” Despite such concerns, many directors are still eager to embrace it. By this, caution should still be exercised, as false scripts and unreliable data sources can make AI’s capabilities potentially dangerous. Often, systems operate on a Structured Query Language (SQL) database and utilizes machine learning to match data from various sources, generating visualizations or valuable insights. However, if the original data is corrupt or tainted with false information, it can lead to systemic problems and in turn affect organizational decisions. Taking a step back to thoroughly process the available information and verifying the data sources before making a decision would be the best approach.
With the dangers from new technologies, geopolitical issues and other black-swan events, Richard advocated that global organizations and supply chains ought to remain resilient and be able to adapt to changes effectively. TAPA Standards are developed to help businesses stay on top of current and emerging risks, safeguarding their assets and long-term profitability.
About the Moderator
Mr. Richard Hancock Regional Director APAC, CRISIS24
Mr. Richard Hancock has spent the last 34 years living and working in the Asia Pacific and the Middle East. Richard has provided in-depth crisis risk mitigation advisory services to governments, NGOs, and Fortune 500 companies, including crisis response, emergency planning, business continuity, corporate security training, and team building.
About the Panelists
Mr. Mark Nuttall Geopolitics, Risk, AML & Security Expert
Mr. Mark Nuttall has an extensive counter-crime, security, ESG, and risk background with over 25 years’ experience as a global risk management, anti-financial crime, and international security specialist. He has advised at the international blue-chip level to C-suite, as well as to international office holders within the geopolitical community. He also speaks at global events.
Mr. Matt Lee Vice Chairman, TAPA APAC Director of Corporate Security, Dell Technologies
Mr. Matt Lee is TAPA APAC Vice-Chairman. Matt is the Director of Corporate Security at Dell Technologies, an experienced Safety and Security Leader with a demonstrated history of working in the semiconductor, energy, and technology industry. He is professionally skilled in Crisis & Risk Management, Close Protection, and Regional Security Operations.
Watch other SCRS Conference 2023 Keynotes and panel discussions here: Session Replays