How Sensitive is Our Plan to Uncertainty and Potential Disruptions/Cost Increases
Value Chain Optimization can help incorporate risk into decision-making processes. By defining risk and determining recovery times and survival periods, it provides a clearer understanding of how different parts of the business interact. Â
This approach encourages collaboration across functions to balance trade-offs among various business objectives and to make informed policy and strategic decisions. As a result, organizations are better equipped to avoid, absorb, and recover from the impacts of major disruptions. By using a risk-balanced strategy, Value Chain Optimization supports organizations in achieving their goals under various scenarios while ensuring that all aspects of the business are considered.Â
- Which variables have the greatest impact on our KPIs
- Which investments/strategies are worthwhile
- How to best respond to actual disruptions
- How do we respond to unexpected disruptions?
- How robust, responsive, and flexible is my supply chain design to changes in key drivers?
- How should my supply chain react to disruptions and special events?
Margins (Ultimately
structural EBITDA and
free cash flow)
Operational risk
Scenario visibility
Scenario agility / Time to respond
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