OVER FOUR in ten (42%) put the risk at 21-40% of revenue, exceeding the global average of 24%.

45% agreed that significant business revenue would be at risk within their organisation if a key supplier experienced a cyber attack, the joint highest percentage of all countries surveyed.

The majority (58%**) of UK-based CEOs believe up to a fifth of their revenue would be at risk if their top three suppliers were disrupted for two weeks, according to new research from Proxima, a  procurement and supply chain consultancy. 

Alongside this, over four in ten (42%) of those surveyed in the UK said 21%-40% of revenue would be in jeopardy should their top three suppliers face disruption, the highest percentage of all markets surveyed.

Paying a premium for resilience  

Proxima’s Global Supply Chain Resilience Outlook, based on a survey of over 500 global CEOs at businesses generating over $500m in annual revenue, also found that the 100 UK-based CEOs would accept an average uplift of 17% on their current third-party supplier costs to guarantee supply chain resilience. The clear majority (68%**) would accept an uplift of 11% or more. 

When asked how they might fund such an uplift in their third-party supplier costs, 43% of UK-based CEOs indicted they would pass price rises on to customers, higher than any other market. Equally, just three in ten (30%) would implement cost saving measures, the lowest percentage of all markets. 

Over a quarter (27%) said they would absorb the costs through reduced margins.  

A varied threat landscape 

When asked which threat currently poses the greatest financial challenge to their supply chain, over a quarter (27%) of UK-based CEOs cited climate change and extreme weather events. This was followed by protectionist policies (21%), conflict and geopolitical tensions (19%) and sustainability targets and regulatory requirements (17%). 

The research also finds that protectionist policies (24%) and conflict and geopolitical tensions (24%) are the two threats that UK-based surveyed CEOs believe their peers underestimate most. 

*“5%-10%” and “11%-20%” answers combined.

**“11%-20%”, “21%-30%”, “31%-40%”, “41%-50%” and “Over 50%” answers combined.