Insights
Supply Chain6 April 2023·7 min read

Preparing for Disruptions with a Risk Register & Scenario Planning

The disruptions of the last few years weren’t one-offs. Global supply chains remain volatile. Here’s a practical framework for building resilience.

Noël Thomson

Noël Thomson

Co-founder, Former NZTE Supply Chain Advisor

Risk management and scenario planning

Why Most Businesses Aren’t Prepared

Many businesses assume that COVID-driven disruptions were exceptional and unlikely to recur. They’re wrong. Global supply chains continue to face elevated variability and uncertainty — from geopolitical tensions and trade policy shifts to climate events and logistics bottlenecks.

The businesses that navigated recent disruptions best weren’t necessarily larger or better resourced. They were the ones that had already identified their risks and planned responses. Two tools make this practical: a risk register and scenario planning.

Step 1: Build a Risk Register

A risk register is a structured document that identifies critical supply chain risks, scores their likelihood and impact, and assigns ownership. The process starts with a simple question in a team session:

“What are some key problems or issues we’ve faced in the last 12–24 months, and what’s the likelihood of these returning or getting worse over time?”

Use the PESTELB framework as a starting point to ensure you’re covering all angles:

P

Political

Trade policy shifts, sanctions, government regulation changes

E

Economic

Interest rates, exchange rates, inflation, commodity prices

S

Sociological

Labour shortages, demographic shifts, consumer behaviour changes

T

Technological

System failures, cyber attacks, technology obsolescence

E

Environmental

Natural disasters, climate events, biosecurity threats

L

Legal

Compliance changes, contractual disputes, regulatory enforcement

B

Biological

Pandemics, biosecurity incursions, workforce health events

Key point

Run these sessions monthly or quarterly. A risk register reviewed regularly is far more valuable than one created once and filed away. Document everything — written plans ensure all team members can follow established disruption response procedures.

Step 2: Scenario Planning

Once you’ve identified your key risks, the next step is developing response scenarios. This means modelling what happens to your supply chain when specific risks materialise — and what actions you’ll take.

Effective scenario planning requires real data. Add these inputs to create realistic models:

Sales forecasts and demand signals
Capacity plans across your network
Inventory policies and safety stock levels
Supplier lead times and reliability data
Operating costs and freight rates
Key performance indicators (KPIs)

For each high-priority risk, model at least two scenarios: a moderate disruption and a severe disruption. Document the trigger conditions, expected impact, and the specific actions your team will take. The goal isn’t to predict the future — it’s to reduce reaction time when disruptions occur.

Tools for Scenario Modelling

Basic scenario planning can be done in a well-structured spreadsheet. As your planning matures, dedicated platforms add the ability to run complex multi-variable simulations. Here’s what’s available.

Specialist Scenario Planning Platforms

Kinaxis Maestro

Concurrent planning engine — runs what-if simulations in seconds. Gartner Leader 11 years running.

o9 Digital Brain

AI-driven digital twin combining supply chain, commercial, and financial data into a single decision engine. Gartner Leader.

Blue Yonder

End-to-end SC planning with AI-enabled forecasting and execution. Gartner Leader 12 consecutive years.

anyLogistix

Supply chain simulation, network design, and risk analysis. Accessible entry point for businesses building their first scenario models.

Already on an ERP? Major platforms like SAP (IBP), Oracle (SCM Cloud), and Microsoft (Dynamics 365) include scenario planning modules. Check what’s available in your existing licence before investing in a standalone tool.

The important thing is starting. A risk register in a spreadsheet reviewed monthly will protect your business far better than a sophisticated platform you never implement.

Where to Start

If you haven’t done this before, start with a single team session. Gather your operations, procurement, and logistics leads. Use the PESTELB framework. List your top 10 risks, score them for likelihood and impact, and assign an owner for each. That’s your risk register. Then pick the top 3 risks and build one scenario for each. You’ll have a workable resilience framework in a single afternoon.

Take a SC Maturity Assessment

Frequently Asked Questions

How often should we update our risk register?
Monthly or quarterly team sessions work best. The key is consistency — a risk register that’s reviewed quarterly is far more valuable than one created once and filed away. Each session should revisit existing risks, add new ones, and update likelihood and impact scores.
Do we need specialist software for scenario planning?
Not to start. A well-structured spreadsheet can model basic scenarios effectively. As your planning matures, platforms like Kinaxis, SAP IBP, or Microsoft Dynamics add the ability to run complex multi-variable simulations. Start simple, invest in tools when the value is proven.
What’s the difference between a risk register and a business continuity plan?
A risk register identifies and scores potential disruptions. A business continuity plan documents how you’ll respond when disruptions actually occur. The risk register feeds the continuity plan — you can’t plan responses to risks you haven’t identified.
How does this relate to S&OP?
Risk registers and scenario planning are natural extensions of a mature S&OP process. S&OP aligns demand, supply, and financial plans; scenario planning stress-tests those plans against potential disruptions. Organisations with strong S&OP processes are better positioned to respond because their baseline planning is already solid.
Is this relevant for SMEs or only large businesses?
SMEs arguably need risk registers more than large businesses. Larger organisations can absorb disruptions through scale and diversification. An SME with a single supplier or warehouse has less margin for error — understanding and planning for risks is essential.

About the Author

Noël Thomson

Noël Thomson

Co-founder, Synergic Technologies

Former NZTE supply chain advisor. Noël brings deep expertise in S&OP, warehouse automation, and ERP supply chain configuration across manufacturing and distribution. Currently on secondment to Open Country Dairy.

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