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Risk in Context Podcast: Global food crisis compounds vulnerabilities, tests resilience plans

The COVID-19 pandemic, the conflict in Ukraine, and other global challenges have impacted the availability and price of food and agricultural products around the world.

The COVID-19 pandemic, the conflict in Ukraine, and other global challenges have impacted the availability and price of food and agricultural products around the world. And countries, and companies, are facing additional risks — including labor shortages and port congestion — that are impacting their ability to get food and agricultural products to their destinations, compounding the global food crisis.

In this episode of Risk in Context, Maurits Quarles van Ufford, global commodity trading solutions leader within Marsh’s Credit Specialties Practice, talks to Marcus Baker, global head of Marsh’s Marine & Cargo Practice, Catherine Cyphus, head of resilience for the UK and Ireland within Marsh Advisory, and Nicholas Martin, who heads strategic risk consulting in the Pacific. They discuss how the ongoing food crisis is affecting the world and the actions being taken to minimize risk.

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Key takeaways

Confluence of risks is challenging companies’ risk management strategy.

The COVID-19 pandemic, geopolitical challenges, climate transition, and other risks are affecting global food and agriculture supplies testing companies’ resilience plans.

Companies need to build resilience into core supply chains.

Current stresses on global food and agricultural systems have spotlighted vulnerabilities, underscoring the need for companies to prioritize resilience and consider regionalizing, shortening, and diversifying their supply chains.

Shift to just-in-case purchasing is creating new risks.

As companies look to protect themselves by importing more goods, they may encounter shipping capacity challenges, and face storage and aggregation risks.

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