SCRS Conference Day 1 Session #6
End-to-end Supply Chain Resilience: Completing Risk Assessment with Business Continuity Planning (BCP)
By Mr. Ratnakar Bade, CEO, IIRIS Consulting Pvt. Ltd (CPP, CFE, CBCP, TAPA FSR & TSR)
The SCRS Conference, held on June 25th and 26th at the New Bund Center in Pudong, Shanghai, brought together over 250 industry leaders to discuss the pressing issues and emerging trends in supply chain to build greater resilience and sustainability. SCRS Conference is the trademark event organized by Transported Asset Protection Association Asia Pacific (TAPA APAC) across the APAC region for supply chain stakeholders and brand owners. This year’s theme of ‘NextGen Supply Chains: Resilience and Brand Protection’ encapsulates an important agenda for protecting brand and assets against counterfeits.
Mr. Ratnakar Bade, CEO of IIRIS Consulting and Board of Director at TAPA APAC, presented a compelling keynote on the synergy and role of BCP with supply chain risk assessment. Drawing reference on the panel discussion before his presentation, he emphasized that “execution is equally important as equal to strategy” for BCP and risk assessment. He delved into the execution of BCP and associated risk assessments, emphasizing their importance in navigating complexities of today’s global supply chains, including – supply chain complexity, diverse risk landscape, operational complexity; requirements of regulatory compliances, constraints of skilled resources, tech integration needs, challenges of speedy & effective communication, human factor; increasing customer expectations; and ever prevalent need for continual improvement for supply chain efficiency & predictability.
“BCP is only one step in building up business resilience and all other steps are equally important,” said Ratnakar, “TAPA Standards definitely help and contribute heavily to building up the BCP in any organization.” Resilience in business is not achieved overnight; it is a dynamic, ongoing process that involves continuous improvement and adaptation. Building resilience requires more than just having plans in place; it demands a structured approach encompassing infrastructure readiness, technology, people, and processes. Each step in this structure contributes to an organization’s ability to withstand and recover from disruptions. For instance, having ground response and crisis management capabilities are critical components of resilience, as they ensure that businesses can respond promptly and effectively to emergencies. Advanced technologies, such as remote surveillance and centralized monitoring systems, further enhance resilience by providing real-time visibility and enabling rapid responses to incidents. However, the effectiveness of these systems hinges on whether the established plans are actively implemented and utilized when necessary.
The journey toward resilience involves various levels of maturity, with each organization evolving at its own pace. Adopting standards like FSR, TSR, and GSR plays a crucial role in this evolution. These standards provide a framework for assessing and improving resilience across different aspects of operations. Predictive intelligence, despite its technological limitations, is vital for anticipating potential disruptions and implementing preventative measures. This proactive approach of implementing preventive measures & building up response capability enhances the robustness of business continuity planning (BCP). Implementing global standards such as TAPA Standards helps to formalize and standardize resilience efforts, which enables overall BCM structure & capability. True resilience is built through a comprehensive and integrated approach that continually evolves with the changing landscape of risks and challenges.
BCP: Developing Structured Plans that Manages Dynamic Challenges & Embraces Technology Adoption and Collaboration
BCP plans should address the prevention of risks, preparation of the business, and the readiness of people and technology to respond to various threats. In today’s rapidly evolving technological landscape, leveraging advanced technologies for risk assessment and management is critical. Technologies such as Artificial Intelligence (AI), Internet-of-Things (IoT), and blockchain can provide real-time insights and enhance decision-making processes.
Ratnakar highlighted the importance of collaboration in this context, “Collaboration is the key for risk management and that is why supplier relationship is important, and also important are open & realistic customer engagement, and prudent communication plans.” Effective collaboration and communication with stakeholders are vital to ensuring a resilient supply chain.
Risk Assessment: Checklist-Based Approach & Effective Utilization of Enablers
Ratnakar introduced the 10-step risk checklist method, essential for effectively managing and mitigating risks within an organization. It begins with Risk Awareness Trainings, ensuring that all employees understand potential threats and the importance of reporting them. Following this, Incident Reporting & Records are crucial for documenting and tracking occurrences, which aids in identifying Incident Trends & Risk Hotspots. Establishing robust Emergency Response & Crisis Management (CM) Plans ensures preparedness for various scenarios, supported by Crisis Management Teams (CMTs) at both local and corporate levels. IT Business Continuity Planning (BCP) and Disaster Recovery (DR) measures safeguard against technological disruptions, while Infrastructure Readiness ensures physical and operational preparedness. Compliance with Legal & Regulatory Requirements is mandatory to avoid legal repercussions, and regular Risk Assessments & Corrective Action Plans (CAPs) help address and mitigate identified risks. Finally, timely Leadership visibility ensures that senior management is informed about risk status and mitigation efforts, enabling informed decision-making and strategic planning.
Effective risk assessment hinges on five key enablers – leadership support, adequate & skilled resources, internal collaboration, external partnerships, and engaging risk consultants. Leadership support is crucial in this process, as it drives the implementation of necessary changes and resource allocation. Mr. Bade outlined a detailed process involving the creation of corrective action plans and mitigation strategies to be reported to the leadership. For instance, a well-designed Business Continuity Management (BCM) dashboard can present critical risk data to leadership in quick time, capturing their attention and ensuring that corrective action plans—whether related to infrastructure, processes, or high-risk facilities—are promptly addressed. Additionally, both internal and external collaboration are vital; internal teamwork facilitates effective risk management while external partnerships with organizations like TAPA enhance the overall resilience strategy. By leveraging these elements, organizations can maintain robust risk management practices and ensure continuous improvement in their risk mitigation efforts.
Continuous Improvement & Predictive Analysis
During his session, Ratnakar emphasized that resilience in logistics is a structured, multi-layered process. He stressed that even while businesses might have BCP plans in place, the critical question is whether these plans are activated when needed. “It is important to have in place every step of resilience structure build up in place, and utilize it when it is required,” he said. BCP encompasses numerous projects and requires extended timelines for effective implementation. To advance in BCM, continuous improvement across infrastructure, people, processes, and technology is essential. Predictive intelligence plays a fundamental role in anticipating and preparing for emerging risks, while fostering people awareness significantly enhances response capabilities. Predictive intelligence involves analyzing past incidents to foresee and study what has been affected from the disruptions and learn to strategize for similar events.
In the risk assessment framework, risks to several key areas must be meticulously evaluated to ensure comprehensive coverage: facility and infrastructure, people, technology, vendors, suppliers, and critical processes, including IT disaster recovery (ITDR). The impact of risks is assessed across multiple dimensions: people, assets, operations, and brand reputation. The assessment process involves systematic classification and evaluation of risks, followed by the development of a heat map to visually prioritize these risks. Corrective Action Plans (CAPs) are then formulated to address identified issues, with ongoing reporting to leadership and the implementation of effective mitigation strategies. This structured approach ensures that all potential risks are systematically mitigated, thereby safeguarding organizational resilience and operational integrity.
‘Standardization – Using Risk Management Standards to build Operational Resilience
Implementing best practices in Business Continuity Planning (BCP) involved leveraging TAPA Standards alongside other industry standards. In supply chain risk management, TAPA Standards were recognized as being at the top of the spectrum, enabling regulatory compliance, facilitating swift customs procedures, and being accepted for other industry certifications. Ratnakar encouraged risk managers to be part of any standard certification process, stating that even safety and food security standards contributed significantly to a company’s resilience. Embracing these standards not only enhances preparedness but also ensures that risk management practices are comprehensive and effective. Standardization provides a framework for checklist-based risk assessments, which are essential for identifying and mitigating unknown risks across various domains.
Adhering to these standards significantly reduces undue exposures & reactive expenditures related to legal and regulatory requirements or liabilities, thereby enhancing brand reputation. “Standardization always helps in checklist-based risk assessments; it helps in identifying and mitigating emerging as well as unknown risks.” said Ratnakar. The integration of standardization into business continuity planning goes beyond just certification; it fosters a continuous improvement cycle through the Plan-Do-Check-Act (PDCA) methodology. This approach ensures that resilience measures are regularly updated and refined, aligning with evolving risks and operational challenges. As demonstrated by recent case studies, such as the global pandemic and geopolitical conflicts, effective business continuity and risk management practices are crucial for maintaining supply chain stability and safeguarding brand reputation. True resilience lies not only in recovering from disruptions but also in preventing them and preparing to handle them before they impact the organization.
To learn more about TAPA Standards, please visit www.tapa-apac.org
About the Speaker
Mr. Ratnakar Bade
CEO, IIRIS Consulting Pvt. Ltd
In 26 years, he has excelled in Business Resilience, Risk Governance, Physical Security, Crisis Response, and Business Continuity. Starting in the Indian Military, he gained crucial skills in security and crisis management. He advanced in his career through roles at the Reserve Bank of India, Nokia, and Microsoft, specializing in security risk management, Business continuity and Resilience. As Senior Director of Business Risk Management at Flipkart Group, he implemented a comprehensive E-Commerce Integrated Security Risk Management program, covering People Safety, Asset Protection, Investigations, Crisis Response, and Business Continuity. His strategic use of TAPA and Business Continuity Standards led to 100% TAPA FSR certification for Flipkart warehouses and full BCMS (ISO 22301) certification for the business. Driven to make a deeper impact, he blends expertise in investigations, training, risk management, and program development. His career, marked by a commitment to minimizing risk and building high-performance teams, demonstrates his dedication to excellence and resilience.
Email: ratnakar.bade@tapa-apac.org
Linkedin: https://www.linkedin.com/in/ratnakarbade/