BSI Supply

Chain Risk Insights

Report 2021
BSI Supply Chain Risk Insights Report 2021 2

Contents
Chapter 1
Foreword 3 Summary of forecast global risks 5 Conclusion 52

Chapter 2 BSI Connect SCREEN:

Introduction 4 Cargo theft trends 12 Resilience through insight 53

Chapter 3
Migration trends 19 Appendix 54

Chapter 4
Drug smuggling trends 24

Chapter 5
Man-made disruption trends 31

Chapter 6
Business continuity planning 34

Chapter 7
Food fraud and safety trends 39

Chapter 8
Regulatory change trends 45
BSI Supply Chain Risk Insights Report 2021 3

Foreword
COVID-19 had an immense impact However, even as the virus became the Beyond these concerns, stemming directly
on shaping the way organizations top priority for organizations, other risks to from the impact of COVID-19, are other
supply chains and organizational resilience challenges that are likely to materialize in
conducted business in 2020, requiring
continued to occur concurrently with the 2021. The increasing focus by governments
new business plans, workflow spread of COVID-19. The pandemic, in many on rooting out major labour rights violations,
processes and even alternative cases, exacerbated extant threats to security, particularly forced labour, will likely require
sourcing that exposed organizations business continuity and sustainability. The organizations to maintain and even expand
to a host of unexpected risks. spread of the virus shifted the way criminals efforts to comply with new regulations. New
The pandemic shifted priorities and operated and exposed a larger portion of the government measures pertaining to increasing
global population to labour exploitation. the security and ethical conduct of the
exposed gaps in business continuity
supply chain are likely to require supply chain
plans that required companies It was this assortment of challenges and shifts professionals to adapt further this year.
to quickly adapt to the changing in trends last year that will form the basis for
landscape of risk presented through threats that are likely to test organizational The following report details how the above
the lens of the pandemic. Alternative resilience in 2021. Organizations across the risks are likely to test organizational resilience Jim Yarbrough
sourcing similarly exposed unprepared world are set to contend with the lingering in 2021. While concerning, these challenges Director, Global Intelligence
effects of COVID-19 this year, along with chief are not unmanageable. Organizations, armed Programme, BSI
organizations to new security
security concerns, including cargo theft and with this knowledge can begin to plan
challenges that were not present smuggling, the economic toll of lockdown mitigation actions and adaptive measures to
in existing supply chains. measures that in many cases, has only served ensure a secure and sustainable supply chain.
to amplify social issues likely to contribute
to business continuity concerns. The spread
of COVID-19 last year also had the effect of
increasing risks of food fraud and food safety
violations in 2021.
BSI Supply Chain Risk Insights Report 2021 4

Introduction
2020 proved to be the most COVID-19 will certainly have latent effects Report highlights:
challenging year for organizations on organizational resilience throughout
2021, directly and indirectly shifting the way
and the resilience of their supply
chains in decades. Many of the
organizations do business. However, several  OVID-19 continues to exacerbate existing
C
other issues, including increased regulation
obstacles that businesses faced last of supply chains and continued multifaceted threats and create new risks
year clearly stemmed from the spread impacts from business continuity events are
and aftermath of COVID-19, forcing poised to challenge businesses in parallel with Cargo theft trends likely to return to pre-pandemic levels
organizations to adjust in novel ways the lingering impacts of the virus. This report
explores those risks and projects the threats
to maintain their supply chain
that companies are likely to encounter this year.  conomic hardships to propel risk of labour
E
continuity, integrity, and overall and migration issues
resilience. Yet, at the same time, the Organizational Resilience is defined
spread of the virus seemed merely by BSI standard BS 65000:
to exacerbate known threats and “the ability of an organization to
Drug smuggling trends to remain consistent
historical trends organizations have anticipate, prepare for, respond
grappled with for years. and adapt to incremental change  abour strikes tied to economic downturn
L
and sudden disruptions in order continue globally
to survive and prosper”.
 ood fraud and safety will continue to challenge
F
supply chain resilience
Increased regulations are likely to challenge
organizational resilience
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 5

Chapter 1
Summary of forecast
global risks
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 6

COVID-19: Exacerbating existing rather than specific organizations, as being

threats and creating new risks produced by forced labour. Also notable was Throughout 2020, COVID-19
the issuance of new measures by the Canadian
government that similarly require companies to
posed one of the largest threats to
Throughout 2020, COVID-19 posed one of
the largest threats to the security, continuity, take steps to ensure that forced labour doesn’t security, continuity, and resiliency
and resiliency of global supply chains, and exist in their supply chains. Other regulations, of global supply chains, and it
including the Securing America’s Ports Act
it continues to cause disruptions, threaten
and the required implementation of the
continues to cause disruptions,
supply systems, and have residual impacts.
Many of the other concerns BSI monitored International Civil Aviation Organization’s (ICAO) threaten supply systems, and
in 2020, including cargo crime, labour cargo screening standards, may also test have residual impact globally.
exploitation, human rights violations, drug business continuity and the general resilience
smuggling, food insecurity, and man-made of supply chains in North America.
disruptions, remain risks to supply chain
resilience in 2021. The spread of COVID-19 had major detrimental
effects on the economies of Latin America that
are seen continuing to drive ongoing migration
The Americas in the region, potentially exposing migrants
to labour exploitation and leading to a rise in
In the Americas, organizations, particularly crime and social unrest as inequality grows.
those operating in North America, will likely These issues are likely to come to a head in
encounter increased regulation in 2021. This Peru, Haiti, Nicaragua, Chile, and Honduras,
trend is already in evidence with the escalation all of which have presidential elections in 2021
of US government withhold release orders and may see shifts in political ideologies that
(WROs) toward the end of 2020. These orders, could affect business operations.
15 of which were issued by US Customs and
Border Protection (CBP) in the second half
of 2020 alone – a 150 per cent increase over
WROs issued during the entirety of 2019
– culminated in an order in early 2021 that
targeted an entire region and class of products,
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 7

Supply chain risk forecast Regulatory

Scrutiny on company supply chains likely to continue
Yr 1 Yr 3 Yr 5

Americas through application of regulatory changes or mechanisms,

such as withhold release orders

Improving Trend Environmental concerns to likely play a greater role

in trade negotiations with countries in the region
Continued Trend
Worsening Trend COVID-19 Impacts Yr 1 Yr 3 Yr 5
Ineffective delivery, application of vaccine, and spread
of new strains to likely lead to further lockdowns affecting
supply chains in the region

Region to likely struggle in recovering economically,

leading to potentially more security and labour Continued polarization of politics
rights concerns to potentially further destabilize
business operations
Physical Security Yr 1 Yr 3 Yr 5
Economic strife to likely perpetuate regional migration, Sustained risks of cargo theft
with concerns for potential stowaway risks and smuggling despite uptick
in police efforts to combat
Inequality and poverty to likely drive more crime, Domestic security concerns orgnanized crime
creating new and exacerbating existing trends and adaptation of cartels to
impacting supply chains present consistent challenges
for supply chains

Entrenched criminal organizations to continue to

drive region to the top as the world’s primary producer
of illegal drugs

Geopolitics Yr 1 Yr 3 Yr 5
String of presidential elections in next two to
three years to potentially result in swings in ruling
parties as discontent grows over economic and
government performance
Discontent over current political
Global importance of Latin America to likely continue and economic situations in countries
to stagnate, leaving countries to focus on solving with presidential elections this year to
internal issues likely result in social unrest

Business Continuity Yr 1 Yr 3 Yr 5
Inequality and economic disparity in Latin America
likely to manifest itself in the form of more protests
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 8

Asia and the Middle East

In Asia and the Middle East, the spread of

COVID-19 had similar negative effects on the
regions’ economies, forcing many countries,
such as India, Indonesia, and Saudi Arabia,
to adjust labour laws to remain competitive
on the global stage. This move simultaneously
weakened worker protections against
exploitation. The impacts of these labour law
adjustments are expected to manifest in 2021
and could be modified further, depending on
the status of the virus in the region, potentially
exposing a larger percentage of the working
population to diminished labour protections.
Other business continuity tests, including
natural disasters resulting from climate change
and the ongoing global imbalance of shipping
containers, may carry into 2021 and threaten
supply chain resilience.
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 9

Supply chain risk forecast Regulatory

Application of regulatory changes or mechanisms,
Yr 1 Yr 3 Yr 5

Asia Pacific such as withhold release orders, to pressure countries

to improve human and labour rights issues

Improving Trend Signing of the Regional Comprehensive Economic

Partnership may help to offset regional tensions while
Continued Trend
spurring economic growth
Worsening Trend North Korea’s continued
COVID-19 Impacts Yr 1 Yr 3 Yr 5 nuclear ambitions to
More stringent safety controls for imported goods from remain a persistent threat
known COVID hotspots to potential delay shipments, to regional stability
as lockdowns are implemented for resurgent hotspots

Region to likely initially struggle in recovering Scrutiny of labour violations

economically, driving more security and labour likely to continue shaping
rights concerns as young population contends business operations in China
with unemployment
China’s claims to Taiwan to
Physical Security Yr 1 Yr 3 Yr 5 potentially drive relations with
Physical security risks to remain comprehensive, with the United States to a head
countries vulnerable to smuggling and possibly increased
sea piracy for ships transiting the Strait of Malacca
Territory dispute between India,
Potential for terrorism to make a resurgence in the region, China, and Pakistan has the potential
with the disputed region of Kashmir a likely flashpoint to disrupt supply chains in the region

Geopolitics Yr 1 Yr 3 Yr 5
Territorial disputes between China, India, and
Pakistan to continue to threaten stability

US - China relationship to continue to be strained

and could possibly come to a head over China’s
Political uncertainty in several
claims to Taiwan Southeast Asian countries to carry
over into 2021 and pose a challenges
Business Continuity Yr 1 Yr 3 Yr 5 for economic recovery
Capacity issues, stemming in part from container
shortages, to hinder ability to move goods to
destination markets

Climate change to impact transportation in Asia,

especially in flood prone countries
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 10

Europe

In 2021, European supply chains will need to

navigate the effects of Brexit, while increased
regulatory compliance, like that seen in North
America by the US government’s increased
issuance of WROs or the Canadian government’s
regulations restricting organizations from
contributing to forced labour, will require a wider
range of organizations to adjust their business
practices. A growing focus on environmental
sustainability should move to the forefront of
regulatory developments in Europe, with the
ongoing issue of deforestation in the Amazon
blocking a conclusion to a trade agreement
between the European Union (EU) and Brazil.

Africa

Terrorism could return to dominate supply

chain risk in Africa in 2021, with rogue groups
throughout the region certain to remain active
this year. Also compounding supply chain
resilience on that continent is the potential
for more social unrest amid multiple countries’
presidential elections this year. Furthermore,
shifting regional alliances, economic downturn,
persistent migration and ongoing conflict may
add to the difficulties of operating in Africa.
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 11

Supply chain risk forecast Regulatory

Regional governments likely to continue to pass
Yr 1 Yr 3 Yr 5

Europe, Middle East, Africa regulatory changes or mechanisms aimed at solving

human rights issues Stowaway risk likely to continue for supply
chains in Europe as many migrants continue
Improving Trend Environmental concerns to likely play a greater role
to try and reach the United Kingdom

in trade negotiations with countries in the region

Continued Trend
Worsening Trend Weakening economies and shifting migration routes,
as seen in Gulf countries, to result in detrimental
labour law changes

COVID-19 Impacts Yr 1 Yr 3 Yr 5
Continued localized lockdowns as outbreaks occur,
contingent on countries’ ability to effectively and
efficiently vaccinate citizens

Gulf countries to continue nationalizing economies

due to worsening economies from the pandemic
and drop in oil prices

Physical Security Yr 1 Yr 3 Yr 5
Piracy along the Gulf of Guinea will likely shift back to
focusing on oil-based targets as oil prices recover to
pre-COVID levels

Terrorism will continue to disrupt the supply chains in the

Horn of Africa, West-Central Africa, and the Sahel region

Geopolitics Yr 1 Yr 3 Yr 5
Increased potential for political shifts in the Middle East Effects of Brexit to continue to alter
and North Africa resulting in changes to regional alliances supply chains in and outside the
United Kingdom for years to come
Decreasing barriers for business opportunities between
Arab nations and Israel, as diplomatic ties are formalized United States, China, and Russia to
continue to push for influence in
United Kingdom and European Union relationship to likely Africa, with investment likely to
continue to face tests relating to Brexit drive investment opportunities

Business Continuity Yr 1 Yr 3 Yr 5
Continued challenges for migrant
Increased potential for social unrest in Africa, as ten laborers due to often violent
countries prepare for elections in 2021, including Ethiopia, discrimination from locals
Somalia, and South Sudan

Potential for increased investment in Africa as the region

possibly becomes a cheaper alternative for manufacturing
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 12

Chapter 2
Cargo theft trends
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 13

Cargo theft trends likely to return to The spread of COVID-19 in 2020 not only The spread of COVID-19 in 2020 brought about
normal following pandemic shifts BSI-recorded cargo thefts of affected legitimate supply chains and business increased targeting and theft of products
operations, it also forced criminals to adapt. unusual for cargo theft incidents — arguably
medical devices and supplies, This led to shifts in regional cargo theft the most pronounced shift in this area last
 he spread of COVID-19 forced criminals to
T
adapt, causing a shift in regional trends, such
which includes PPE, jumped trends, including more targeting of goods not year. Early on, during the initial spread of the
as greater targeting of certain products and by over 5,000 per cent in commonly seen as attractive to thieves and virus, thieves began to target essential goods,
an added vulnerability for shipments stalled or products associated with preventing the
modalities. BSI Connect SCREEN intelligence 2020 compared with 2019. in facilities. This, in turn, led to more thefts spread of COVID-19, at a much higher rate
noted an increase in thefts from facilities in
Africa and Europe, and an increase in stolen involving warehouses and distribution centres as the limited supply and spike in demand
medical supplies in Europe and Africa. Although the spread of drastically increased the black-market value
COVID-19 continues to influence cargo theft of such items. Thefts of products such as PPE
 espite these changes noted in BSI incident
D around the world, it’s expected that the altered and chemicals, including hand sanitizer, and
data, some trends stayed the same, such patterns of 2020 will revert to historic norms food and beverages, jumped in frequency
as Latin America continuing to suffer a high as the pandemic fades. worldwide, replacing the theft of goods more
number of hijackings and the US and Canada historically targeted, such as electronics.
seeing consistent trends in the targeting of In many ways, cargo theft trends in 2020 BSI-recorded cargo thefts of medical devices
trucks parked in vulnerable locations stayed similar to activity seen in previous and supplies, which includes PPE, jumped
years; Latin America continued to suffer an by over 5,000 per cent in 2020 compared
 s the spread and impact of COVID-19
A extreme rate of cargo truck hijackings, for with 2019. Overall, the highest number of
lessens, cargo theft trends are expected example, accounting for 60 per cent of cargo PPE thefts occurred in Europe, where a much
to return to pre-pandemic levels, with theft incidents recorded in South America and larger portion occurred at warehouses: 70 per
certain types of goods losing value again, 78 per cent of thefts occurring in Mexico last cent took place at warehouses and storage
such as Personal Protective Equipment year. In the US and Canada, thieves continued facilities, while only 30 per cent of thefts
(PPE), and the resumption in trade leading to steal trucks parked in vulnerable locations, involved cargo trucks. Alcohol and tobacco
to more movement of vehicles, restoring accounting for 66 per cent of theft. products similarly saw a jump in thefts around
thieves’ opportunities to again strike this the world as consumption rose while people
transportation mode were under lockdown.
 14

Latin America continued to suffer an

extreme rate of cargo truck hijackings,
accounting for 60 per cent of cargo
theft incidents recorded in South
America and 78 per cent of thefts
occurring in Mexico last year. In the US
and Canada, thieves continued to steal
trucks parked in vulnerable locations,
accounting for 66 per cent of theft.
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 15

While COVID-19 drove this trend in targeting 2020 before picking up dramatically in early
commodities, other factors also led to a 2021. Incidents so far this year represent a Looking forward to the rest of
spike in theft of such products. In general, 200 per cent increase over total 2019 theft.
the volume of such shipments increased to
2021, none of the COVID impacts
meet the surge in demand, giving thieves Looking forward to the rest of 2021, none on cargo thefts are expected to
ample opportunity. In addition, and in BSI’s of the COVID-19 impacts on cargo thefts are remain permanent. Once the virus
experience, the typical security applied to expected to remain permanent. Once the virus
such shipments is generally much lighter than declines, it seems as if certain types of goods
declines, it seems as if certain
that applied to high-value loads of electronics that spiked in terms of theft will lose value types of goods that spiked in
or pharmaceuticals, which contributed to and therefore account for less crime moving terms of theft will lose value and
the elevated rate of some types of theft. forward, as illustrated by BSI Connect SCREEN
intelligence noting a decrease in the frequency
therefore account for less crime
Although global cargo theft trends are likely that PPE had been stolen in the second half moving forward.
to reset to the norm once the spread and of 2020. Additionally, cargo thefts of medical
impact of COVID-19 lessens, the pandemic devices and supplies, while still seeing some
will continue to influence these trends around targeting by thieves, dropped by 25 per cent in
the world during 2021, with a spike in incidents the second half of 2020 versus the year’s first
involving medical-grade oxygen being the two quarters. However, the economic impact of
latest development. Many regions, including COVID-19 has been detrimental for economies
Latin America, the Middle East, and Africa, around the world, so it is possible that crime,
are facing extreme shortages of medical- including cargo theft, may rise in the early part
grade oxygen as demand, pushed up by rising of this year as individuals continue to try to
cases of COVID-19, has depleted normal global compensate for lost income.
supplies. This shortage has sent the black-
market price for medical-grade oxygen soaring,
leading to a dramatic rise in the appeal of the
product for cargo thieves in affected regions.
As a result of this spike in price and demand,
BSI recorded multiple cargo thefts involving
medical-grade oxygen in the later months of
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 16

Advisor Insight Organizations looking to mitigate cargo

crime in their supply chain need to stay
 eview service-level agreements
R
with security service providers;
Warehouses and facilities storing
and distributing products attractive
ahead of risk. By proactively understanding where an increased risk of theft is to thieves should be more vigilant
the risk profile of a region, implementing identified, consider increasing the than ever with their security protocols.
relevant procedures to secure the supply number of personnel patrolling the Specifically focus on managing and
chain, and consistently re-evaluating crime facility as a deterrence controlling access to products and
vulnerabilities, organizations will build a logistics information, including:
supply chain that is ahead of the criminal 
Liaise with local law enforcement to
tactics and trends detailed in this report. understand crime activity and risks, and  ocking storage areas when not in use,
L
To better prepare for and respond to where appropriate, consider requesting and strictly controlling the number of
emerging risks, organizations should regular police visits to the facility personnel given access to these areas
consider the following recommendations
to protect cargo, both in-transit and when Transportation organizations should  eticulously control and record who is
M
at rest: regularly review their route risk authorized to access product logistics
management planning and anti-hijacking information
 eview security risk assessments regularly
R protocols to ensure effective alarm
to identify and capture emerging theft risks response and escalation communications,  anage access to restricted storage
M
and apply loss prevention measures particularly with law enforcement. areas with physical keys or swipe-card
Paul Raw protocols Record issuance and return
Senior Consultant,  eview operational security measures for
R of physical keys in a log; all keys should
Supply Chain facilities that are closed or where there are be secured when not in use
Security, BSI reduced operations to ensure appropriate
protection is in place  rain staff to recognize and report
T
suspicious activity or unauthorized
 eview facility security systems and
R persons seeking access to restricted
physical maintenance programs to ensure areas or product logistics
security equipment is operational during
David Fairnie closed or reduced-activity periods  nsure appropriate due diligence is
E
Principal conducted when hiring temporary
Consultant, staff, and strictly supervise their
activities and access to restricted
Supply Chain
areas and logistics information.
Security, BSI
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 17

Cargo theft trends Cargo theft types Modalities of theft

2020 2019 2019
Global 2019 v. 2020
Hijacking 30% 26%
Theft from facility 24% 12%
87%
Theft of vehicle 11% 16%
Truck
Theft from vehicle 9% 20%
Theft from container/trailer 8% 0%
Slash and grab 3% 14%
Other 15% 12%

Other

10% 1% 2%
Facility Sea
30

25 2020

20

15 71%
Truck
10

5
Other
0
2020 / 2019 25% <1% 4%
Facility Sea
BSI Supply Chain Risk Insights Report 2021 Chapter 2 Cargo theft trends 18

Cargo theft trends Cargo theft types Top commodities stolen

2020 2020
Global 2020
Hijacking 30%
Theft from facility 24%
Theft of vehicle 11%
Theft from vehicle 9%
31% 10% 9% 9%
Theft from container/trailer 8% Food and Consumer Electronics Alcohol and
Beverage Products Tobacco
Other 18%

Other

7% 5% 30%
Fuel Construction Other major
Materials commodities

Modalities of theft Top countries for cargo theft

2020 2020

Other ~4% Brazil

India
Mexico
Facility 25% Germany
Russia
United Kingdom

Truck 71%
BSI Supply Chain Risk Insights Report 2021 Chapter 3 Migration trends 19

Chapter 3
Migration trends
BSI Supply Chain Risk Insights Report 2021 Chapter 3 Migration trends 20

Economic hardships to propel risk Shifting migration routes in Europe,

of labour, human rights violations, Asia, Middle East and Africa Top Modalities of
and stowaway smuggling stowaway incidents
Top Modalities of Stowaway Incidents in 2020
Mass migration on its own does not pose an 2020
 OVID-19’s pushing economies into
C overt threat to supply chains; instead, it is
lockdown put the world’s most vulnerable the tendency for some individuals, often Truck 89.13%
communities at greater risk of labour facilitated by organized crime, to exploit gaps Rail Truck 4.98%
89.13%

exploitation and human rights violations, in security that are the real risk. Europe and Rail 4.98%
Sea Sea 4.9%
4.9%
creating new migration trends as people the Americas are two regions where stowaways Van 0.54%

are consistently present in supply chains. Van Air 0.54%

0.38%
attempt to avoid hardships and seek Facility 0.08%

economic opportunities This trend proved to be true throughout 2020 Air 0.38%
and will almost certainly carry over into 2021. Facility 0.08%
 t the start of 2020, border closures and
A As in previous years, an overwhelming majority
other pandemic impacts led to a decrease of stowaway incidents involved the trucks,
in migration, but new stowaway smuggling accounting for approximately 89 per cent of
routes and labour risks developed later in incidents recorded by BSI. Lockdowns and
the year as controls declined but economic restrictions created queues and idle times
opportunity continued to be sparse, leaving for trucks, further aggravating this problem
migrants outside their countries susceptible in 2020.
to labour exploitation
BSI Supply Chain Risk Insights Report 2021 Chapter 3 Migration trends 21

Despite the temporary downturn in migration

early last year due to COVID-19 and related Stowaway risks in Europe
lockdowns, a significant increase and shift
in migration occurred by summer1. Escalating Migration route
political and economic issues led migrants EU Schengen
increasingly to attempt to reach other regions
EU Non-Schengen
of the world, notably migrants from North Sweden Finland
Africa and the Middle East traveling to Europe. Non-EU Schengen
Norway

An uptick in migration from the Middle East

and North Africa occurred along the Balkan
and Central Mediterranean routes2, with human Estonia

traffickers often targeting trucks to move

Countries of detection in
stowaways. Migrants in border EU countries,
often facilitated by human traffickers, will recorded stowaway incidents Denmark
Latvia

attempt to stow away into parked and slow- 2020 Lithuania

moving trucks.
Romania 16% Germany 9% Ireland
Belarus
United
Although migration levels in Europe continue Greece 7% France 7% NL
Kingdom
Poland
to remain well below peak levels, with the EU Germany
North Macedonia 7% Other 55% BE
border agency, Frontex, indicating that irregular Czech
migration into the region last year was at its Republic Ukraine
Slovakia
lowest point since 2013 due to the spread of Austria
COVID-193, the risk of stowaways remains for France Switz.
Hungary
MDA

organizations operating in Europe.

Modalities of recorded SI
Croatia
Romania

stowaway incidents Bosnia-

Herzegovina
Serbia

2020 Italy ME
KV
Bulgaria
MK

Spain
AL
Portugal
Greece
Other Turkey
1
https://frontex.europa.eu/media-centre/news/news-release/situation-at-eu-external-borders-

2
arrivals-picking-up-still-down-for-the-year-nqkCT5
https://frontex.europa.eu/media-centre/news/news-release/irregular-migration-into-eu-last- 93% 3% 2% 2%
year-lowest-since-2013-due-to-covid-19-j34zp2 Truck Rail Sea
3
https://frontex.europa.eu/media-centre/news/news-release/irregular-migration-into-eu-last-
year-lowest-since-2013-due-to-covid-19-j34zp2
BSI Supply Chain Risk Insights Report 2021 Chapter 3 Migration trends 22

Besides migration from the Middle East and

Africa towards Europe, the Americas also
2
Tijuana
Ciudad Juarez
continued to experience a high number of Nogales 2

stowaway incidents in 2020. Like Europe,

2

Croatia
France
15

authorities there initially recorded a slight Bosnia &

Serbia
Herzegovinia Hermosillo
dip in frequency at the beginning of the Chihuahua
year, but movements eventually increased
Italy
45
Montenegro Nuevo Laredo

as controls to stop the spread of COVID-19

eased4. Throughout the year, the dominant
15
49 Reynosa
Monterrey 40
trend in stowaway activity was through Torreon Saltillo

shipments originating in Mexico and destined Albania Culiacan

Durango
40
57

for the US, primarily Texas. Some migrants

from Central American countries, attempting
85

San Lusi
to travel north to the US, tried to do so by Greece 54
Potosi
Tampico

stowing away in trucks or by forming large Leon 57 85

Guadalajara Santiago de Queretaro M

caravans passing through Mexico either on 15

Mexico City
foot or on top of rail freight. The frequency Morelia 180
Veracruz
Puebla
of these events suggests that such a risk
186
190 Coatzacoalcos
145

will continue into 2021. Chilpancingo

Oaxaca
Acapulco
190
Juchitan de
Zaragoza
Tunisia

Migration trends in the Mediterranean General path of rail freight routes in Mexico
Based on historical data and qualitative analysis
used by migrant stowaways

Hospots for migrant discovery El Diablo rail

Migrant transit point in Lampedusa, Italy La Bestia rail freight route
Illegal migration route
Legal migration route

4
https://www.cbp.gov/newsroom/national-media-release/cbp-announces-january-2021-operational-update
BSI Supply Chain Risk Insights Report 2021 Chapter 3 Migration trends 23

Further COVID-19 fallout: Child labour labour incidents are seen increasing in 2021,
forecast to increase in Latin America as the possibility grows of all family members Estimated GDP growth
being forced to work to make a living. Hence, 2020
Along with the security risks to supply chains focusing on mitigating these threats and
associated with mass migration, it also poses enhancing the vetting of suppliers and workers Peru -13.9%
several key corporate social responsibility throughout the supply chain is increasingly
Mexico -10.5%
risks, most notably, the increased potential important in 2021.
Argentina -9.9%
for labour rights violations. Various international
Decreased economic output also has Brazil -9.1%
organizations have voiced concern over the
growth of child labour in countries across influenced government revenue and, in turn, Colombia -7.8%
Latin America due to the economic and the ability to enforce labour laws. According Chile -7.5%
social impacts of the pandemic. At the start to the International Monetary Fund (IMF),
of the pandemic, the International Labour major Latin American countries have significant
Organization (ILO) predicted that child and projected decreases in gross domestic
forced labour would increase due to the crisis5 product (GDP), with Mexico, Ecuador, Peru and
and some signs of that materializing have Argentina standouts for detrimental economic
been seen both in 2020 and early 2021. impact6. Many governments have sought to
spur growth by scaling back labour regulations
The multifaceted nature of child labour in in reaction to the economic downturn.
developing countries has made tackling the However, deregulation holds the inherent risks
issue difficult, especially as the economic of increasing child and forced labour, as well
situation has deteriorated in some countries. as worsening general working conditions.
Further, as these hardships continue and
schools remain closed, child and forced

-15 -12 -9 -6 -3 0

5
https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_747583/lang--en/index.htm
6
https://blogs.imf.org/2020/10/22/pandemic-persistence-clouds-latin-america-and-caribbean-recovery/
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 24

Chapter 4
Drug smuggling trends
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 25

Drug smuggling trends to remain to the COVID-19 world by changing means

consistent as details shift and methods, while largely following historic
patterns. This ingenuity could continue to
 angs in the historical production
G confront organizations throughout this year,
centres for illegal drugs in Latin America with smugglers using novel methods of
and Asia continued to produce and attempt concealment or routes to move shipments
to transport to the same destinations, of illegal drugs to destination markets in
including North America and Europe North America and Europe.

 owever, smugglers employed novel

H While not all dockworkers are corrupt of
methods of concealment or routes to move course, there are some workers who will
shipments of illegal drugs to destination coordinate with gangs at ports in South
markets in North America and Europe America to remove the drugs from ships and
put them on cargo trucks transiting Europe.
As with cargo theft, the spread of COVID-19 Shipments of illegal drugs found in cargo in
had a major impact on drug smuggling in Europe were embedded in food and beverage
2020, leading groups to adapt in tactical ways products on a large scale in 2020.
that led to altered risks to supply chains. The
spread and response to COVID-19 had cut off
traditional supply chains through lockdowns
and mobility bans, challenging operators,
port security, and other introduction points.
Despite these changes, smugglers adapted
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 26

COVID-19 affects criminal supply The impact of COVID-19 was measurable in

The closure of the US-Mexico chains in Asia and the Americas seizure totals by month, which fell last year
from March to the lowest level in May before
border to all but essential traffic, picking up significantly through August. One
Just as with many organizations, Mexican drug
namely freight, removed a key cartels felt the impact of the initial outbreak possible adaptation that can help to explain
avenue for cartels to traffic and spread of COVID-19 on their criminal supply the uninterrupted trafficking of substances,
including methamphetamine and fentanyl,
illegal drugs into the US. chain in 2020. The measures implemented to
could be a pivot to air cargo as a means of
halt the initial spread of COVID-19 disrupted
the ability of cartels to secure the chemicals acquiring the chemicals to produce illegal
needed to produce illegal drugs, along with drugs. BSI Connect SCREEN intelligence noted
the cocaine from South America that cartels this by recording two seizures of fentanyl from
sell both domestically and internationally. air cargo shipments.

Beyond the supply disruption, the US Another possible factor to explain the
government’s announcement of enhanced continued ability of cartels in Mexico to traffic
illegal drug interdiction efforts in the Caribbean illegal drugs is the development of alternative
Sea converged with ingredient supply chemicals, beyond diversifying their sources
constraints to have an impact on Mexican of chemicals.
cartel supplies. As a result, cartels were forced
to develop alternative sources. Perhaps most Lastly, thefts of legal pharmaceuticals have
notably, the closure of the US-Mexico border occurred on a massive scale in Mexico since
to all but essential traffic, namely freight, the outbreak of COVID-19, with incidents often
removed a key avenue for cartels to traffic occurring at hospitals, pharmacies, and even
illegal drugs into the US. That, combined with from freight.
supply constraints, had significant ramifications
for supply chains in the short to medium
term. Cartels increasingly looked to exploit
corrupt individuals or to infiltrate supply chains
deemed essential to replace this restricted
transportation route.
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 27

Major global illegal Route

drug smuggling flows
2020

Truck Sea Air

To Spain, Belgium
and the Netherlands
To Turkey and
Balkan Route

To UAE To Australia and

To Asia To Mexico and
and Libya Malaysia From the Americas
United States

To Australia and
Malaysia

To Spain, Portugal, Belgium,

Italy, and the Netherlands
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 28

Advisor Insight Tips for leveraging technology  oving forward, these types of
M
technologies will allow organizations
Questions and considerations
should include:
to audit business partners in the
to troubleshoot supply chain issues
post-COVID-19 world
in real time  ow good is the internet, Wi-Fi, and cell
H
signal at the site to allow for sharing of
Organizations are increasingly using
 rganizations will be able to give their
O video? Recording of videos can work,
technology to carry out remote audits
suppliers training, assistance with but live video is preferred
of business partners around the world.
investigations, and on-demand review of
However, there are several considerations
standard operating procedures whenever  hat is the best way to share
W
and tips that organizations should follow
needed without traveling to a site documents securely and confidentially?
to ensure effective implementation of
such audits.
 e suggest reaching out to suppliers to
W  hat are the key portions of the facility
W
understand their willingness and ability that the company wants to see and
Immersive technologies have allowed
to participate in virtual assessments, assess, either in pictures or live video?
organizations to reach their suppliers
auditing, and coaching. For security assessments, we suggest
more easily through virtual means
both interior and exterior loading docks,
facility perimeter, all visitor and employee
 ven post-pandemic, it is likely that
E
entrances, any key production areas, IT
remote assessments that include in-depth
control rooms, video and alarm control
document review paired with immersive
rooms, and a walk around the exterior of
technology giving a live view of the site
the facility. A floor plan of the site can be
will continue to be used to connect in-
helpful for planning
demand specialists and allow for the ability
to see hard-to-reach areas and real-time

Who will participate in the audit? Prepare
assessment
an agenda to better plan when speaking
with key personnel on-site

Tony Pelli
Practice Director,
Security and
Resilience, BSI
BSI Supply Chain Risk Insights Report 2021 Chapter 4 Drug smuggling trends 29

Emerging drug-smuggling trends dominated by amphetamine-type substances.

The increased smuggling of methamphetamine Top countries in Asia
The increase in trafficking of methamphetamine tracks with trends outlined by the United for illegal drug seizures
and fentanyl from Mexico to the US is expected Nations Office on Drugs and Crime (UNODC) from cargo
by BSI to continue in 2021. This, in turn, could and US Drug Enforcement Administration (DEA).
2020
affect measures that organizations take to
mitigate the risk of illegal drug smuggling in This trend in illegal drug seizures in the US
is expected to continue in 2021 and require India 46.76%
their cargo. In line with BSI-recorded incidents
organizations to shift strategies to combat Indonesia 15.74%
involving cargo, data from CBP shows an
increase in seizures of methamphetamine and the risk in several slightly different ways. Australia 10.19%
a decrease in cocaine seizures for 20207. Unlike marijuana and even cocaine, seizures Thailand 5.56%
of methamphetamine largely have been less- Bangladesh 4.63%
than-truckload quantities. This suggests that
Other 17.13%
BSI intelligence-recorded seizures of illegal organizations may be more likely to encounter
the introduction of illegal drugs in otherwise-
drugs from cargo entering the US
legitimate shipments of goods, rather than
2019 2020 by dedicated truckloads facilitated by corrupt
Amphetamine-type supply chain employees. A shift to greater
stimulants 22.4% 40.6% emphasis on employee vetting may help
Cannabis 27.5% 27.2% mitigate this risk, rather than concentrating Modality of
on vetting the contracting company to
Coca and Cocaine 38.7% 24.28%
determine legitimacy.
seizures of illegal 58%
Other 11.2% 7.8% drugs from cargo Truck

Another trend that BSI expects to continue in Asia

in 2021 is the growing trade of illegal drugs 2020
Disruptions in cargo flows between cocaine-
in Asia. Last year, the proportion of incidents
producing countries and cocaine-importing
of illegal drugs seized from cargo in Asia
countries during the spread of COVID-19
increased by 77 per cent over 2019 in BSI
probably forced organized criminal groups to
Connect SCREEN intelligence-recorded
find different smuggling routes and to seek new 13%
incidents. Although in terms of raw numbers, 12% 10%
modalities for transporting drugs. In addition, Sea
more seizures of illegal drugs from cargo Air
Parcel
markets for cocaine have shifted, with Europe
still occur in the Americas and Europe, the 7%
taking over as the top destination for the
increased proportion of incidents occurring
illegal substance, while the US market became Other
in Asia is indicative of the growing smuggling
trend in the region.
7
https://www.cbp.gov/newsroom/stats/cbp-enforcement-statistics-fy2020
 30

The growing trade of illegal drugs in

Asia is expected to continue in 2021.
Last year, the proportion of incidents
of illegal drugs seized from cargo in
Asia increased by 77 per cent over
2019 BSI-recorded incidents.
BSI Supply Chain Risk Insights Report 2021 Chapter 5 Man-made disruption trends 31

Chapter 5
Man-made
disruption trends
BSI Supply Chain Risk Insights Report 2021 Chapter 5 Man-made disruption trends 32

Political protests and labour strikes Political protests not stopped

to carry into 2021 by COVID-19 lockdowns

 he risk of man-made disruption to supply

T Political protests and labour strikes will remain
chains grows as the consequences of prevalent in 2021 as countries continue to
the pandemic amplify socio-economic grapple with the uncertainties of a pandemic,
inequalities high rates of unemployment, and continued
social unrest. In 2020, protests occurred in
 idespread human-led disruption initially
W each region of the world, with some of the
decreased in the first half of 2020 due to most impactful ones reported in Belarus,
lockdown measures Russia, the Netherlands, and Germany in
Europe; Hong Kong, India, and Myanmar in
 overnments and supply chains may face
G Asia; Chile and Brazil in South America; Mexico
new challenges in 2021 as single-issue anti- and the US in North America; Iran, Lebanon,
lockdown protests or industry-specific labour and Israel in the Middle East; and South Africa,
strikes evolve into complex anti-government Nigeria, and Tunisia in Africa. While varied
protests that challenge the resilience of events initially triggered these protests, in most
business operations cases the unifying trends underlying them are
stagnating inequality and poor living standards.

As political protests emerged, some remained

concentrated, resulting in generally peaceful
demonstrations with limited impact to
business operations, as seen in parts of the
US and Europe. In other instances, social
unrest quickly evolved into nationwide
demonstrations, sometimes becoming violent
and highly disruptive as protestors demanded
political changes through strikes, road
blockages, and looting, as was seen in Belarus,
Nigeria, and India.
BSI Supply Chain Risk Insights Report 2021 Chapter 5 Man-made disruption trends 33

Labour strikes tied to economic

downturn continue globally Top industries experiencing
labour strikes
As the pandemic takes its toll on economies, 2020
workforces across various industries have
been hit by unanticipated business closures Food and beverage
Food and Beverage 27%
and subsequent unemployment. As a result, Metal 13%
Metal
some countries initiated changes in labour
Apparel and Footwear 12%
Apparel
laws, disallowing or making collective
bargaining more difficult and other movements, Fuel Fuel 10%
as seen as a part of Indian labour law reforms Manufacturing materials 6%Materials
Manufacturing
in Q3 2020, for example8. These moves led to Construction materials 5%
Construction Materials
a significant increase in labour strikes in the Other Other 27%
second half of 2020, following facility closures
and restrictions on gatherings.

Globally, BSI Connect SCREEN intelligence

recorded 27 per cent of labour strikes taking
place in the food and beverage industries,
followed by 13 per cent in the metals Top countries experiencing
industry and 12 per cent in the apparel labour strikes
and footwear sector.
2020
However, as the economy opens back up
around the world following the pandemic, Italy Italy 14%
labour strikes could ensue with demands India India 11%
related to compensation, wage withholdings, France France 10%
and benefits, as well as payment for added Argentina Argentina 5%
complexities resulting from working through Greece Greece 5%
the pandemic.
Bangladesh Bangladesh 4%
Other Other 52%

8
India Ministry or Labour and Employment, 2020: http://egazette.nic.in/WriteReadData/2019/210356.pdf
BSI Supply Chain Risk Insights Report 2021 Chapter 6 Business continuity planning 34

Chapter 6
Business continuity
planning
BSI Supply Chain Risk Insights Report 2021 Chapter 6 Business continuity planning 35

Disruptive events highlighting As we begin 2021, we notice that these

importance of business continuity disruptive events continue to have significant In a survey conducted by BSI last
impact on business operations, worker safety,
planning
and transportation continuity. This trend should
year, 62 per cent of organizations
intensify as the pandemic continues to reveal reported having a business
Increasingly, natural disasters and man-
made disruption are having multiple impacts
and, in some cases worsen, existing supply continuity plan in place. Even for
chain issues. In a survey conducted by BSI last
on business operations, either through
year, 62 per cent of organizations reported
those with continuity plans, supply
secondary or tertiary continuity challenges chain disruption remains a top
having a business continuity plan in place.9
or exposure to security threats such as
cargo theft
Even for those with continuity plans, supply three concern throughout 2020.
chain disruption remains a top three concern
throughout 2020.
 hese incidents must be analyzed from
T
multiple angles to determine the true
Simultaneously, climate change presents an
impact to businesses, so comprehensive
increasing threat to supply chains around
planning is important
the world. There are also concerns that the
economic, as well as physical, effects of the
Like man-made disruption and the effects
pandemic will hinder disaster recovery efforts
of COVID-19, shifting business continuity
as countries re-allocate funds or slow recovery
challenges for supply chains remain
efforts with more lockdown measures. In
widespread. In 2020, incidents ranging from
the same vein, organizations should ensure
rising container shortages to transporting
their internal relief funds aren’t re-allocated to
constraints in the United Kingdom (UK)
counter the negative economic effects of
highlighted the need for business continuity
the pandemic.
planning. Another ongoing concern is the
growing risk that natural disasters pose for
supply chain resilience, as demonstrated,
for example, by the impact of major storms
in Vietnam on transportation through port
and road closures last year.

9
https://www.bsigroup.com/topics/novel-coronavirus-covid-19
BSI Supply Chain Risk Insights Report 2021 Chapter 6 Business continuity planning 36

Multifaceted impact of natural stalled cargo via that modality, creating a another example in Vietnam, where the country based on current geographical risk of all types
disasters and man-made disruption backup of goods at ports, storage facilities, experienced repeated, major storms last year. of natural disasters and man-made disruption.
and even on railways themselves when freight Authorities said the typhoons, which they Whether natural or man-made, the assessment
trains were unable to travel. This backup of referred to as “abnormal,” resulted in a total of should also integrate parts of the organization
Throughout last year, natural disasters goods created an added exposure to cargo $1.3 billion in damage. While storms are a major that are perhaps more focused on security.
and man-made disruption not only theft, especially if organizations did not concern for the continuity of supply chains
had business continuity impact on anticipate situations in which shipments would because they cause forced closure of ports Second, current and flexible contingency plans
organizations but also often led to new be required to remain in storage facilities. and roads, such incidents can also affect the should be in place and provided in employee
security and other types of concerns. BSI Connect SCREEN intelligence recorded security of shipments because evacuations training so that the proper actions can be taken
can leave facilities vulnerable to theft. in the event of an incident impacting business
Natural disasters are increasingly creating continuity. One effective way to ensure that
both business continuity and security Another example can be seen in the spread response plans are flexible is to develop broad,
concerns around the world. This trend is of wildfires in California last year, which enterprise-level policies that are then altered
seen intensifying in 2021, given the ongoing highlights the myriad challenges that natural slightly for regional risk differences.
disruption from COVID-19 combined with disasters can pose to supply chains. Wildfires
repeated storms, earthquakes, and other types can disrupt supply chains, including delaying Organizations should implement a general
of natural disasters. In addition to the more transportation. Interruptions to utilities can framework for managing or governing an
obvious impacts of natural disaster events, also occur, including preventing manufacturing emergency response that incorporates some
such as facility and infrastructure disruption, or other operations, as was the case for basics for different scenarios. Depending
BSI recorded other impacts as well, such as organizations in California. During last year’s on the scope of the organization, implement
protests involving rail blockades and disrupting wildfire season, many had to contend with regional or office/facility-level differences.
international supply chains in Mexico. Protests blackouts instituted by the state power Maintaining an effective communication system
and labour strikes may not seem to have direct operator that left residents and businesses is also critical, both from a logistical standpoint
impact on the security of supply chains but without electricity to prevent further fires. and to constitute a plan for maintaining a safe
they often indirectly make freight vulnerable. Other wildfire issues are also highly relevant working environment. Conducting an after-
Besides adding security concerns, these for employee safety: In California, smoke action report or exercise to identify gaps in
types of incidents can hinder other operations, conditions also posed a risk to those working contingency planning is also recommended,
such as the ability to obtain insurance. in affected areas, which forced some as it allows for improvement of procedures and
organizations to halt operations. lends itself to greater organizational resilience.
There are several countries that can be
highlighted as examples. In Mexico, BSI The threat that these incidents posed to supply
Connect SCREEN intelligence recorded lengthy chains highlights the need for establishing and
protests that involved railway blockades that updating comprehensive risk assessments
 37

Natural disasters are increasingly

creating both business continuity and
security concerns around the world.
This trend is seen intensifying in 2021,
given the ongoing disruption from
COVID-19 combined with repeated
storms, earthquakes, and other types
of natural disasters.
BSI Supply Chain Risk Insights Report 2021 Chapter 6 Business continuity planning 38

Advisor Insight Disaster management and take actions to reduce the impact (commonly,
moving resources to safe harbors, stockpiling,
stakeholders can inform all parties of the
changing situation, actions taken, and
emergency response cycle
and/or setting up secondary infrastructure). areas of success or failure in the disaster
As we approach our disaster seasons around The preparation phase includes developing management plan.
the world, clearly the impact of COVID-19 and implementing strategies for the risks
will continue to disrupt planning cycles that remain present, to further reduce the For those organizations that embrace
and disaster management capabilities. In impact of the event. For a hurricane, this the change and seek to identify and
many cases, the cumulative effect can could include the fortification of facilities; for satisfy changing needs, 2021 will offer
be managed by taking the capabilities we wildfires, it may include cutting back foliage tremendous opportunity. For those unable
have developed and applying a change and scrub and setting up evacuation bunkers. to adapt to the changing environment,
management approach to identifying new As the final phase of the disaster management the forecast is less certain.
risks. Then we must build strategies to cycle before the event arrives, it is the last
mitigate them. The critical resource we can’t opportunity to evacuate.
control, however, is time. If we delay acting,
it is quite possible we will run out of time to The response phase is initiated by the onset of
develop and implement effective disaster the event itself and should result in seamless
management plans. and timely response measures as the event
unfolds. The key to effective response is
If we look at the disaster and emergency the identification beforehand of risks and
Prevention
management cycle, three of the five development of those insights into decisive
elements are pre-event measures that actions. Beyond the development of effective
can and should be developed now. Action response plans, flexibility is a tremendously
powerful tool in the arsenal of resilient
Recovery Mitigation
taken now can reduce the impact of events
and potentially save lives and money for communities, organizations, and individuals.
communities, organizations, and individuals. This level of flexibility and positive action can
be achieved proactively. Train and give staff Response Preparation
Prevention strategies include removing a clear understanding of desired outcomes,
Paul Raw yourself or your organization from the impact constraints, and resources available. Also
Senior Consultant, area of disasters. Where this isn’t possible, ensure effective communication so that all
Supply Chain
Security, BSI
BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 39

Chapter 7
Food fraud and
safety trends
BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 40

Fraudulent and unsafe food to Food fraud is an increasingly difficult challenge criminals to produce or supply fraudulent food,
continue to challenge supply to tackle that can have major ramifications as many agencies were either resource-limited Part of the challenge lies in
for the resilience and integrity of brands. The or following altered procedures to observe
chain resilience
spread of COVID-19 last year only served to
the globalization of food supply
protocols aimed at reducing the spread of
exacerbate this trend, as the spread of the the virus. chains, which sources inputs
 he COVID-19 pandemic initially led to panic
T
buying, stockpiling, and overall disruption
virus highlighted vulnerabilities in food supply from an array of countries that
chains that criminals could exploit to introduce While these issues above were certainly
to food supply chains in well-developed
fraudulent food into legitimate supplies.
may or may not have a robust
underscored during the spread of COVID-19,
countries; while these countries were able
Due to a range of reasons, including labour these same vulnerabilities existed in food framework and enforcement
to manage the problem, it did expose flaws
in global food supply chains that criminals
shortages and movement restrictions, food supply chains prior to 2020 and continue to apparatus available to combat
organizations were unable to secure supplies exist now, indicating that food organizations
could use to introduce fraudulent food into
needed to meet shifts in demand, particularly
fraudulent practices.
will continue to be susceptible to fraud in 2021
legitimate supplies
during the early stages of the pandemic in and beyond. Part of the challenge lies in the
which panic-buying and stockpiling were globalization of food supply chains, which
 he adoption of alternative sources during
T
common. However, this adoption of new sources inputs from an array of countries
a time of reduced ability to audit for best-
suppliers took place during a time in which the that may or may not have a robust framework
practices further exacerbate this exposure
ability to physically visit and work with these and enforcement apparatus available to
to food fraud and posed challenges for the
organizations to ensure best practice was combat fraudulent practices. According to a
safety of products
limited, exposing supply chains to the potential 2020 report from the Food and Agriculture
risk of fraudulent food entering legitimate Organization of the United Nations, “trade in
 lthough these challenges came to the
A
supplies through disingenuous companies food and agriculture has more than doubled in
forefront during the spread of COVID-19,
looking to cut corners. real terms since 1995. Emerging and developing
the same vulnerablities existed prior to the
countries have become active participants
spread of the virus, suggesting that the
General disruption to food supply chains also in global markets and they now account for
globalized food supply chain is susceptible
contributed to a scarcity of raw materials and about one third of global trade.”10 In addition,
to similar issues of fraud in 2021 and beyond.
products that drove prices slightly higher other factors including the threat of cargo theft
but nonetheless increased the incentive for and supply chain corruption have correlations
criminals to produce and distribute fraudulent with the risk of food fraud and the sourcing of
food. A decreased government capacity to products from a broader range of countries that
inspect food shipments during the spread of may be susceptible to these threats further
COVID-19 further increased opportunity for exposes organizations to food fraud.

10
http://www.fao.org/3/cb0665en/CB0665EN.pdf
BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 41

Food fraud risks highlighted in 2020 fraudulent consumable products are severe
and highlight the importance of inspections
Throughout most of 2020, especially between and tight controls within production facilities.
April – September, criminals increasingly The risk of corruption by individuals working in
stole food, beverage, alcohol, and tobacco a supply chain tends to correlate with the risk
commodities. This was likely due to their of food fraud. BSI analyzed that approximately
increased value as a result of panic-buying, 85 per cent of countries with a high risk of
stockpiling, and shortages, along with ease of supply chain of corruption also have a high
sale on the black market. The increasing value risk of food fraud. Recently, the Malaysian
of these items created a greater vulnerability halal meat scandal11 epitomized this ongoing
for theft, but also put these commodities at issue. Adulterated or mislabeled non-halal
an elevated risk for counterfeiting and food goods entered factories without inspections
safety violations. and criminals within the supply chain repacked
them with halal-certified meat and fake halal
Countries such as India and Mexico logos. Such incidents of food fraud propagated
experienced large upticks in food fraud during by insiders in the supply chain can involve
the year, while multiple countries dealt with lower-level employees as well as executives
significant issues tied to counterfeit alcohol and underscore the need for vetting suppliers
production. Between July – September, several and auditing supply locations to ensure
food safety incidents occurred in India and the compliance and mitigate corruption.
country experienced a prevalence of spurious
liquor that killed at least 38 people in the
Punjab region. Turkey, Brazil, and Mexico all
reported criminals increasingly producing and
distributing counterfeit alcoholic beverages.
The ramifications from counterfeit and

11
https://www.bloomberg.com/news/articles/2020-12-30/fake-halal-meat-scandal-in-muslim-majority-malaysia-fuels-anger
BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 42

Products at risk of food fraud

in countries with issues of
supply chain corruption
Alcohol, beef, dairy, fruit,
grains, honey, oils, poultry,
Svalbard (Norway)
and seafood

Greenland (Denmark)

Sweden
Alaska (USA) Iceland

Faroe Islands
Norway
Finland
Russia
Estonia

Canada Denmark
Lithuania
Latvia

Ireland United Belarus

Kingdom Netherlands Poland
Germany

Fruit, confectionery,
Belgium

Luxembourg
Czech Rep.
Ukraine
Kazakhstan
Slovakia

Moldova
Mongolia
Austria

France
Hungary

honey, grain, dairy,

Switzerland

Slovenia
Croatia Romania
Bosnia
and Serbia
Herz.

Montenegro
Kosovo Bulgaria Uzbekistan
Georgia

and alcohol products

Kyrgyzstan

Spain Italy
Macedonia

Albania
North
Turkey
Armenia Azerbaijan

United States of America Portugal Greece

Turkmenistan Tajikistan
Korea
Japan
Azores (Portugal)
South
Malta
Korea
Syria
China
Cyprus

Iraq Afghanistan
Lebanon

Bermuda
Madeira Island (Portugal) Morocco Tunisia

Israel
Iran
Canary Islands (Spain)
Jordan
Pakistan
Kuwait

Algeria
Nepal

Libya
Meat, seafood,
Bhutan

Mexico Egypt Saudi Qatar

India
Bangladesh
United

Arabia
Western
Sahara Arab
The Bahamas Emirates

Cuba Oman Myanmar Hong Kong

snacks, cooking oil

(Burma)
Laos
Cayman Islands
Mauritania
Mali
Haiti Dominican Puerto Rico (USA)

Niger
Republic
Jamaica

Chad
Belize Antigua and Barbuda

Sudan
Saint Kitts and Nevis
Guadeloupe
Thailand
Montserrat
Guatemala Antigua and Barbuda Dominica
Cape Verde
Eritrea Yemen
Honduras Martinique Senegal
El Salvador Saint Lucia Vietnam
The Gambia
Saint Vincent
Burkina Cambodia
Philippines
Nicaragua Barbados
Grenada
Guinea-Bissau Faso Djibouti

Costa Rica Trinidad and Tobago

Guinea Benin
Adaman
and

Nigeria
Nicobar
Islands
Togo
Cote
(India)
Panama
Venezuela
Sierra Leone Central South Ethiopia
Liberia D’Ivoire Ghana
Afican Sudan
Sri Lanka
Guyana Republic
French Guiana Cameroon Brunei

Colombia Suriname Bioko (Equatorial Guinea)

Somalia Malaysia
Equatorial Guinea
Uganda
Ecuador
Sao Tome
Gabon Democratic Kenya
Galapagos Republic

Cabinda (Province)
Congo of the Congo
Seychelles
Indonesia Papua
New
Guinea
Tanzania
Solomon Islands
East Timor

Peru Brazil Comoros

Angola
Mayotte (France)
Mozambique
Zambia
Malawi

Vanuatu

Bolivia Madagascar Fiji

Zimbabwe
Mauritius
Namibia
Reunion
Botswana New Caledonia (France)
Paraguay

Australia
Alcoholic beverages,
Chile Swaziland

Lesotho

South Africa

milk products, palm oil

Argentina Milk, cooking oil, spices, fruits,
vegetables, sweets, cereals New Zealand

Kerguelen Island (France)

Falkland Islands (UK)

Heard Island (Australia)

South Georgia (UK)

BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 43

Food fraud trends intensified BSI records of food fraud, with some reports
by shortages indicating that approximately 89.2 per cent of Types of food fraud incidents
milk products in the country are adulterated13. 2020
Countries with a significant population thought These countries frequently have gaps in
to be facing food shortages and the risk of legislation and enforcement that weaken the Diversion/Smuggling 74%
food fraud offer criminals the potential to take ability to detect and seize fake food, and this
issue is only likely to worsen in 2021.
Origin Diversion/Smuggling
9%
advantage of the situation. They can either Labeling Origin 9%
produce substandard food for distribution in
Other forms of food fraud, in particular Adulteration
Labeling 8%
the country, or substitute labeled products
with often-harmful alternatives. Using estimates smuggling and disguising origin, are most Adulteration
from the US Department of Agriculture common and are bound to continue in
Economic Research Service, 89 per cent of countries where the price of food, due to
assessed countries with 15 per cent or more shortages or general insecurity, rises to the
of their population estimated to be facing food point where it becomes economically viable
insecurity also have a High or Severe BSI risk for criminals to smuggle food across borders
rating for food fraud12. to take advantage of higher prices. However,
it is also very possible that criminals will
Food fraud becomes a significant issue when benefit from gaps in enforcement that allow
supply has decreased, as exemplified by cases other methods, such as adulterating labels
of counterfeit alcoholic beverage distribution. or expiration dates or using substandard or Types of food in fraud incidents
However, most countries facing food shortages alternative ingredients.
2020
and subsequent high demand also suffer from
fraudulent food production domestically. For
Alcohol 30%
example, in India, adulterated dairy products,
especially milk, are produced domestically Seafood Alcohol 11%
and consistently recorded in incidents that Meat Seafood 11%
Grains Meat 10%
Fruit Grains 7%
Milk and Dairy
Fruit 5%
Other 26%
Milk and Dairy
Other
https://www.ers.usda.gov/webdocs/publications/100426/ap-088.pdf?v=2732.7
https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/68-milk-
milk-products-in-india-not-as-per-fssai-standard-official/65695094
12
https://www.ers.usda.gov/webdocs/publications/100426/ap-088.pdf?v=2732.7
13
https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/68-milk-milk-products-in-india-not-as-per-fssai-standard-official/65695094
BSI Supply Chain Risk Insights Report 2021 Chapter 7 Food fraud and safety trends 44

Food safety violations as COVID-19 While it is unclear if the COVID-19 impact around
constrains enforcement the world was similar in terms of disruption to Detention of unsafe food shipments
food safety control, there is some evidence that 2020
The spread of COVID-19 last year significantly the issue spread beyond the EU. In the UK, for
affected government capacity to enforce example, the Food Standards Agency indicated Germany
food safety regulations, which means that that some high-risk organizations could miss
Belgium
some foods may not have been checked as an inspection as the agency attempted to clear
the backlog of inspections created as COVID-19 Netherlands
thoroughly. This was particularly evident in
countries in Europe, such as Germany, Belgium spread15. Elsewhere, in Indonesia, inspectors
and the Netherlands, where a marked drop found that 982 food distribution facilities failed
in the detention of unsafe food products to comply with regulations.
occurred during the initial spread of COVID-19.
At this time, the European Commission As the spread of COVID-19 lessens in 2021,
granted national authorities a greater amount government resources will be freed to resume
of flexibility in conducting food safety food safety controls. However, it is also likely
screenings to minimize supply chain disruption. that any further complications from the virus,
While some reduced food detention can be such as new strains potentially resulting in
explained by the drop in food shipments tied additional lockdowns, could prevent countries
to local restrictions, it may be that inspection from checking food thoroughly. 25
resources were constrained, leading to food
not being checked as thoroughly.
20
In addition, the spread of COVID-19 likely
worsened an existing issue of reduced food 15
safety enforcement in Europe. Third-party
analysis14 released in early 2021 suggests that
some countries were already contending 10
with a lack of sufficient resources to perform
safety checks on food businesses, partly due
to governmental budget cuts and reductions 5
in staffing.
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct

14
https://www.foodsafetynews.com/2021/02/eu-countries-battling-lack-of-resources-for-food-controls/
15
https://www.foodsafetynews.com/2020/12/high-risk-firms-may-miss-an-inspection-due-to-covid-19/
BSI Supply Chain Risk Insights Report 2021 Chapter 1 Summary of forecast global risks 45

Chapter 8
Regulatory
change trends
BSI Supply Chain Risk Insights Report 2021 Chapter 8 Regulatory change trends 46

Regulatory changes to continue In 2020, governments made a concerted effort

to test organizational adaptability to address concerns of forced labour in supply
chains. The US government spearheaded
Increased regulations are likely to challenge this effort through the issuance of Withhold
organizational resilience by creating new Release Orders (WROs) on shipments of
compliance measures aimed at increasing goods that it deemed to be produced by
sustainable sourcing and improving supply forced labour, blocking entry to products
chain security originating from or manufactured by specific
organizations.16 These WROs continued
It is almost certain that organizations will throughout 2020, targeting products
have to increasingly scrutinize the supply manufactured by specific organizations before
chain for susceptibility to labour violations culminating in a rejection of all cotton and
tomato products produced in China’s Xinjiang
 everal new regulations pertaining to
S Uyghur Autonomous Region17. That order
security could have impacts on the differed from past orders in that it targeted an
continuity of business operations in 2021 entire class of products produced in a whole
region of China, rather than being focused on
certain types of goods produced by specific
entities operating in the area.

16
https://www.cbp.gov/trade/programs-administration/forced-labour/withhold-release-orders-and-findings
17
https://www.cbp.gov/trade/programs-administration/forced-labour/withhold-release-orders-and-findings
BSI Supply Chain Risk Insights Report 2021 Chapter 8 Regulatory change trends 47

Forced labour violations in Asia legal foundation provided by the US-Mexico-

sparking global regulations Canada Agreement, which requires all three Xinjiang Province of China, Location of Uighur Minority
countries to ban the entry of goods produced
Ongoing concern over forced labour issues in by forced labour19. In the UK’s measures, the 1 – Beijing
Asia drove several key regulatory developments eye-catching point is the strengthening of the 2 – Tianjin
last year that are sure to impact supply chains in operation of the Modern Slavery Act, which
3 – Ningxia
2021 and foreshadow the potential for additional requires companies to report on how they are
countering forced labour in their supply chains 4 – Chongqing
legislation and rules.
and implements fines for those not complying
The release of the region wide, product- with transparency requirements20.
class WRO in China earlier this year coincided
with the US State Department’s labeling Both UK and Canadian measures have potential
the treatment of Uyghur Muslims in Xinjiang impacts for a range of organizations. However, Mongolia Heilongjiang
as “genocide”, a stance that the new US it is the shared point in the measures issued by
presidential administration has upheld18. More both governments to broaden export controls
that will likely require a wider range of industries Jilin
recently, the US House of Representatives
reintroduced a bill that would ban imports from to comply. Each set of measures restricts Liaoning
the Xinjiang region unless they are certified as the export of goods that could contribute to Xinjiang
Gansu Inner
being produced without forced labour. The bill forced labour, a point that brings other types Mongolia
1

also allows for additional sanctions on Chinese of industries, even those in the electronics Hebei 2
officials. While by themselves significant for sector, into the scope of organizations required Shanxi
3
a range of organizations, these legislative to comply. Reports suggest that the Australian Qinghai Shandong
developments could be expanded in 2021, as and New Zealand governments are considering
the current US government has not indicated issuing similar regulations. Shaanxi Henan Jiangsu
that it would imminently halt these actions. Tibet
Hubei Anhui Shanghai
Entity Number of CBP BSI Forced Sichuan
The US, UK and Canadian governments each WROs in 2020 Labor Rating 4
Zhejiang
passed measures aimed at eliminating forced Jiangxi
labour in the supply chain that have the Hunan
potential to affect a wide range of organizations.
China 9 Severe Guizhou Fujian
Canada’s measures include import prohibition Malaysia 3 Severe Yunnan
for goods produced wholly or in part by forced Guangxi Guangdong
labour, a mechanism made possible under the
Fishing Vessles 3 India Shenzhen
Myanmar
Hainan
18
https://2017-2021.state.gov/determination-of-the-secretary-of-state-on-atrocities-in-xinjiang/index.html
15
https://www.canada.ca/en/global-affairs/news/2021/01/backgrounder---measures-related-to-the-human-rights-situation-in-the-xinjiang-uyghur-autonomous-region.html
16
https://www.gov.uk/government/speeches/foreign-secretary-on-the-situation-in-xinjiang-and-the-governments-response
BSI Supply Chain Risk Insights Report 2021 Chapter 8 Regulatory change trends 48

Advisor Insight Heightened awareness on the topic This heightened awareness has grown thanks
to efforts by a range of stakeholders. First,
about their practices and the potential
risk of forced labour. Using BSI Connect
of forced labour presents a risk
importation of goods produced with forced SCREEN intelligence to understand supplier
to organizations that don’t give
labour has been prohibited in the US for the workforces and whether they are composed
enough attention to it within their past 90 years, per the Smoot-Hawley Tariff Act. of migrant workers who may be subject
supply chains. This issue has also Loopholes in that law that enabled importers to debt bondage schemes is also key in
created an intersection between to legally import such goods when there was assessing for the risk of labour exploitation.
supply chain security professionals consumer demand (purchasing more of the
and their peers responsible for good than we can produce domestically in
the US) were removed during the Obama
sustainable procurement. Perception
administration, calling more attention to the
and response to prohibiting forced issue for CBP. Next, corporate disclosure laws
labour has evolved from its being in California (the California Transparency in
solely understood as a fundamental Supply Chains Act), the UK (the UK Modern
human right to also being treated as Slavery Act), and other countries called further
a criminal justice issue. attention to company due diligence practices.

Modern slavery practices sit at the extreme In addition, much attention has been directed
end of a continuum of exploitation ranging at unethical recruitment of migrant workers.
from decent work to severe forms of They are often trapped in debt bondage by
exploitation amounting to slavery. It is a web of recruitment agencies that don’t
distinct from other forms of poor, unlawful, provide clear employment terms, withhold
and unethical labour and employment worker passports, and require workers to pay
practices, as victims are often unable to fees that take years to work off at the supplier
refuse or escape exploitative conditions site. All these practices are clear indicators
because of threats of violence, coercion, of exploitative practices and are treated as
deception, or abuse of power. Employers analogous to forced labour.
Ryan Lynch and other key stakeholders in supply chains
Practice Director, have a responsibility to ensure the health, In recognition of these issues, organizations
Sustainability, BSI safety, and wellbeing of workers and to should adjust CSR questionnaire templates
provide safe and healthy work environments. to gather information from their suppliers
 49

Organizations should adjust CSR

questionnaire templates to gather
information from their suppliers
about their practices and the potential
risk of forced labour.
BSI Supply Chain Risk Insights Report 2021 Chapter 8 Regulatory change trends 50

The EU also adopted a human rights for association with a company in Brazil that’s of the implications these negotiations may environmental, social, and labour policies.
sanctioning regime in late 2020 contributing to deforestation can be particularly have on their business operations in 2021. Environmental degradation from mining often
damaging to brand integrity. This issue — both affects individuals and businesses far outside
that has the potential to affect
in Brazil and around the world — underscores The issue of deforestation is not the only the mining area. Improper management
organizations found to be using the need for accurately mapping suppliers challenge that organizations must consider in of wastewater and runoff can contaminate
forced labour21. Under the regime, the to identify and mitigate any potential risks sourcing sustainably. Although the traditional waterways, and poorly managed reservoirs
EU has powers to target individuals of sourcing from a company contributing conflict minerals — tantalum, tin, tungsten, and can contaminate ground water. Increased
and entities for human rights issues to deforestation. gold — are typically associated with production exposure to heavy metals and carcinogenic
including genocide, crimes against in Africa, other minerals mined elsewhere also contaminants has clear effects on mining
Beyond focusing on Brazil, a separate contribute to either conflict or the funding communities found to have elevated incidents
humanity, and other violations such as
consultation is underway in the EU22 and of organized crime. As such, they present of cancer. The same regions that most often
slavery. As a result, it is possible that the UK23 on taking substantial action to risks to brand integrity and, in some cases, suffer the health consequences of mineral
organizations operating in the EU may curb deforestation and stop consumption organizations encountering sanctioned parties. exploitation fail to receive sufficient tax
face similar requirements to comply of deforested products. In the UK, the In addition, minerals mined in other countries revenue to pay for medical interventions.
with sanctions against entities found government sought input on a new law may also present the risk of contributing to
to be using forced labour. prohibiting businesses from obtaining goods, environmental degradation, and ultimately lead
especially agricultural items, from deforested to regulatory restrictions akin to those applied
land. Under this proposed legislation, to supply chains to combat labour exploitation.
Sustainable sourcing and businesses could face fines if due diligence
deforestation in supply chains still assuring no deforestation in their supply Another region of concern for sustainable
drives regulatory developments chains is not conducted. sourcing beyond Africa is Latin America. Mining
operations across Latin America are implicated
A challenge that increasingly factored into The EU in 2020 also sought out comments in myriad social and environmental concerns.
business’ consideration in sourcing last year on proposed measures that would help As world demand for minerals and metals has
was deforestation. Brazil is arguably at the mitigate deforestation24. While deforestation increased exponentially in recent decades, the
forefront of these concerns, as deforestation certainly occurs in major exporting countries profit motive for new mining ventures across
there continues at a rapid rate. Because of this, around the world, issues of environmental Latin America has increased. Governments
in 2020 investors in Brazilian beef firms called degradation were also brought to light in also benefit from increased revenue from
upon organizations to provide traceability for Europe last year, particularly in countries such mining operations, and therefore work with
cattle from Brazil, as well as to commit to zero as Ukraine, Romania, and Serbia. Due to these mining companies to exploit mineral and
deforestation in the Amazon. The potential developments, organizations should be aware metal resources, often through questionable

21
https://www.consilium.europa.eu/en/press/press-releases/2020/12/07/eu-adopts-a-global-human-rights-sanctions-regime/
22
https://ec.europa.eu/environment/forests/deforestation.htm#:~:text=As%20a%20follow%2Dup%20to,closed%20on%2010%20December%202020.
23
https://www.gov.uk/government/consultations/forests-reducing-deforestation-in-uk-supply-chains
24
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12137-Minimising-the-risk-of-deforestation-and-forest-degradation-associated-with-products-placed-on-the-EU-market/public-consultation
BSI Supply Chain Risk Insights Report 2021 Chapter 8 Regulatory change trends 51

Emerging security issues Another piece of legislation, the Securing

In June, countries belonging to generating new standards America’s Ports Act, signed before the previous
the ICAO will be required to comply US presidential administration departed,
While meeting the challenges caused by requires CBP to report to Congress within 180
with 100 per cent cargo screening the spread of COVID-19 certainly dominated days of the signing of the law a plan to expand
on cargo-only flights. organizations’ priorities last year, other types the use of imagery scanning on all land traffic
of regulatory changes pertaining to increased entering the country, both passenger and
supply chain security are sure to become freight vehicles, as well as rail freight25.
focal points for businesses in 2021.
While the goal outlined in the new act is
In June, countries belonging to the ICAO will ambitious and potentially unattainable,
be required to comply with 100 per cent cargo especially given other mandates requiring
screening on cargo-only flights. So far, the US full scanning of inbound cargo, the potential
Transportation Security Administration (TSA) for this legislation to move forward is likely
appears to be moving forward with a plan to translate into cargo delays when entering
that would allow manufacturers, retailers, and the country.
other entities to prove facilities are secure as
a substitute for screening. In general, carriers While cargo in Canada probably wouldn’t
are already complying with the standard, but face much additional risk, freight at rest in
the short implementation period suggests that Mexico, given the extensive threat of cargo
some confusion, and possibly disruption to theft and smuggling there, would almost
airfreight could occur. certainly incur more.

25
https://www.congress.gov/bill/116th-congress/house-bill/5273
BSI Supply Chain Risk Insights Report 2021 52

Conclusion
Although the main impact of the example, relate to maintaining a socially Working alongside BSI can provide you with Foreword by Jim
pandemic has arguably passed for responsible supply chain. These government the knowledge and expertise to avoid the
measures are very likely going to test the ability detrimental impacts that these potential
most of the world, organizations are
of organizations to further readjust internal risks could have on organizations that are
still likely to face a broad range of procedures to remain compliant. unprepared. BSI’s team of intelligence analysts
challenges stemming from COVID-19 can equip you with the knowledge needed
in 2021. Supply chain criminals are Although these challenges may be daunting, to stay ahead of emerging security, business
likely to continue to adapt in novel organizations can take solace in the fact that continuity and sustainability risks around the
ways that will force organizations to there are actions that can be implemented world, while our team of expert advisors are
to mitigate the impact that these challenges able to work with organizations in order to
similarly readjust.
have on resilience. Conducting proper develop and implement best practices that
risk management can help to ensure that will help support a resilient organization.
The effect that the pandemic had last year
organizations remain resilient in 2021;
in widening the economic and social divide
however, this process is not without effort,
in many countries is likely to increase the
as organizations must map out the supply Christopher Tomas
potential for widespread man-made disruption
chain, properly identify critical suppliers Lead Intelligence Analyst
while simultaneously driving migration and
and routes and keep abreast of knowledge
exposing a larger portion of the population to
around geographic risks in order to plan and
the risk of labour exploitation. This trend will
best apply measures aimed at countering
force organizations to remain alert to potential
pertinent threats. While 2021 is unlikely to be
situations that could impede the ability to
as challenging as 2020, organizations should
source or deliver goods or could damage
take the lessons learned from COVID-19 and
brand integrity. On top of these risks is the
understand that the best mitigation plans
broadening requirement of organizations
are adaptable to the ever-evolving threat
to comply with new regulations which, for
landscape that is likely to test organizational
resilience in the future.
BSI Supply Chain Risk Insight
Insight Report 2021 53

Empowering organizations BSI Connect SCREEN: Find out more at:

to be ready for the future Resilience through insight bsigroup.com
As the financial, environmental, and social Employing a risk-based approach to supplier
climates of our planet continuously shift, auditing and supply chain risk management,
BSI’s founding purpose to benefit society BSI Connect SCREEN is the world’s largest
is more relevant now than ever before. proprietary global supply chain risk
By shaping, sharing, embedding, assessing, intelligence database.
and supporting industry best practice, for 120
years BSI has equipped organizations with the Utilising over 25 risk-ratings in more than
tools and techniques they need to turn today’s 200 countries, organizations turn to
challenges into tomorrow’s opportunities. BSI Connect SCREEN to accelerate their
understanding of supply chain risk and gain
Working globally across a range of sectors insight to empower decision-making for a
- with specialist expertise in the built more resilient supply chain.
environment, food and retail, automotive
and aerospace, and healthcare - BSI offers By infusing geographic data based on risk,
a range of services and solutions to make vulnerability, probability, and impact, combined
organizations more trusted and resilient. with features to proactively identify, analyse,
and track compliance and risk through self-
We adopt innovative technology and assessments and internal and external audits,
processes to offer our services in an efficient BSI Connect SCREEN is the only end-to-end
and effective manner. Adopting a balance of suite of services to assess, monitor and
hindsight and foresight, BSI partners with our efficiently manage supply chain risks.
clients to embed sustainable behaviours for
the long-term benefit of their people, their
customers, and our planet.
BSI Supply Chain Risk Insights Report 2021 54

Appendix
BSI Supply Chain Risk Insights Report 2021 Appendix 55

References

Photographers / Collection

• serts / E+ Cover
• Monty Rakusen / Cultura 6
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• gerenme / iStock 15
• aaaaimages / Moment 20
• Portra / DigitalVision 25
• VallarieE / E+ 26
• anucha sirivisansuwan / Moment 30
• Abdurahman Khalil / EyeEm 32
• lavizzara / iStock 37
• Nitat Termmee / Moment 40
• Martin Harvey / Photodisc 46
• Roberto Westbrook / Royalty-free 49
• luoman / E+ 50

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