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6. Is supply chain risk management integrated into your enterprise riskmanagement approach?7. Do you record the details of supply chain incidents and the actions youhave put in place to avoid future incidents?8. Do your tier 1 suppliers have business continuity plans that have beentested in terms of their viability?9. Have you provided risk training to your supply chain management team?10. Is risk on the agenda of performance meetings with your strategicsuppliers? 52Similarly, some businesses have developed protocols that must be met by suppliers.One example of this type of protocol is the Customs-Trade Partnership AgainstTerrorism or C-TPAT, created by a consortium of the U.S. Government and businessesafter the September 11, 2001 terrorist attacks. 53E. Contractual ProtectionIn light of the continued threat of catastrophic events, it is imperative that businessesanalyze their contractual relationships to allocate the risk of non-performance as a resultof these events. Although contractual provisions can include indemnity, additionalinsured, notice, liquidated damages, suspension, and other provisions, the mostimportant provision is a properly-drafted force majeure clause. The purpose of a forcemajeure clause is to (1) allocate risk and (2) place the parties on notice of events that52 Zurich HelpPoint Supply Chain Health Check, RISK INSIGHT SUPPLY CHAIN ISSUE, 2009, at 26, 27(discussing standards by which a business can measure its supply chain health).53 Taking Measures to Cope with Delivery Disruption, RISK INSIGHT SUPPLY CHAIN ISSUE, 2011, at 14, 15(discussing planning for a critical supply shortage).March 5, 2015 17 @ 3-5-2015 ALFA International6427256.3/SP/00009/0099/011215

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