ABSTRACT
This chapter focuses on supply chain risks, is therefore to begin educating themselves, as risk professionals, about the risks inherent to their companies' supply and demand chains. A disruption affecting its agencies or its Internet-based business would not affect the portion of periodic premium payments to be collected on policies already in force. Such type of business model diminishes the impact of supply chain disruptions since a likely, large portion of revenues would continue to be collected. Globalization has changed the face of doing business in virtually every industry. In the early century, most companies embraced vertical integration and manufactured most of the goods they needed to produce their products. The usual causes for such events are related to people or engineering but may also result from natural catastrophes such as flood, typhoon, hurricane, or earthquake, or both human and natural as in case of 2011 Japan earthquake; the nuclear disaster resulted from the inability to cool off towers.
