This change reflects a broader reality. Organizations must now consider not only the health of their direct suppliers, but also the stability, compliance and resiliency of the extended network on which those suppliers depend.
See beyond Tier 1 suppliers
For many businesses, the most significant vulnerabilities exist at multiple levels of the supply chain. Traditional review methods (manual surveys, periodic assessments, or self-reported data) often provide incomplete or outdated information about the overall health of the supply chain. As a result, risks associated with second and third tier suppliers remain largely invisible until they materialize.
Modern tools based on artificial intelligence are disrupting this visibility challenge. With access to vast global data sets and mapped supplier relationships, tools like RSM’s SRS help organizations identify who their suppliers rely on, where potential disruptions could come from, and the extent to which their broader network may be financially or geopolitically exposed. This level of knowledge is increasingly essential as disruptions become more frequent and widespread.
Integrate supply chain risks into ERM and audit functions
To move from reactive problem solving to proactive resilience, supply chain risks must be integrated into ERM frameworks. This means integrating supply chain information into strategic decision-making, aligning it with risk appetite and integrating it into governance, procurement and business continuity processes.
Modern platforms make this integration more actionable by providing continuous monitoring rather than static, one-off assessments. With near real-time insights, organizations can anticipate changes in supplier stability, regulatory exposure or geopolitical volatility and adjust their risk posture accordingly.
For many organizations, the most effective way to initiate integration is through a targeted proof of concept, such as driving supply chain risk reporting within internal audit or applying advanced risk monitoring to a critical supplier segment or high-risk geography. This process allows teams to quickly validate value, build internal alignment, and demonstrate how deeper visibility can directly support business objectives. This proof of concept can be facilitated or owned by the second or third line of defense.
It is equally important to align integration efforts with the priorities of key stakeholders. If the objective is to protect income; ensure regulatory compliance; reinforcement environmental, social and governance (ESG) commitments; or to improve operational resilience, supply chain risk management should not be positioned as a control exercise, but as a strategic tool that drives measurable business value.