Robust global supply chains are vital to many businesses’ ordinary operations. Monitoring and managing cross-border risks that may impact these supply chains are critical to enhancing and safeguarding their functionality and reliability, as a single point of failure can bring operations to a grinding halt and lead to severe financial and reputational losses.

Insurance can mitigate cross-border risks arising out of geo-political and government-related disruptions (such as war, corruption or expropriation), social unrest and cyber vulnerabilities. Different insurance products respond to these risks in different ways. For example, contingent business interruption coverage generally responds to mitigate lost profits resulting from an interruption of business caused by physical damage to a supplier’s property, while cyber insurance generally protects against the costs of digital threats, such as ransomware attacks, phishing or hacking.

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