CSCOs Must Strengthen Risk Management Amid Global Tariff Uncertainty

Chief supply chain officers have become accustomed to uncertainty, and 2025 is expected to be no different, especially as companies brace for the unpredictability of tariffs and potential market fluctuations.

In this climate, CSCOs need to find effective ways to enhance their organizations’ responsiveness and, when possible, gain a competitive edge in the shifting trade environment.

It’s critical to have a strong risk-management strategy in place. Yet confusion over the meaning of “resilience” creates a challenge for many organizations. Resources are often overly concentrated on less critical areas, leaving essential components exposed and impacting profitability.

In a recent Gartner survey, 82% of supply chain leaders indicated that resources meant for proactive risk mitigation, including resilience, were directed toward the wrong risks. This misallocation was linked to an 18% decrease in profitability, according to survey respondents.

Many organizations are grappling with the concept of resilience, often treating it as a business outcome rather than a capability that helps the business ensure that it can profitably meet demand, despite disruptions. To address confusion over resilience, maximize the benefits of risk management investments, and prepare for uncertainty, CSCOs should focus on the following three actions.

Prioritize business objectives for risk management. According to Gartner research, 68% of supply chain leaders used just half of the resources set aside for addressing disruptions in the past year, suggesting overpreparation at best, or protection from the wrong risks at worst.

Organizations need to establish a flexible risk-management framework that can adapt to changes in business priorities, and focus on areas with the most significant impact on success.

A good starting point is to conduct a cost-benefit analysis, whereby organizations can weigh the potential impact of risks against the cost of mitigation strategies. Additionally, by regularly updating the risk register in line with current business objectives, leaders can help