Telecom Network Equipment Manufacturer Gains Deep Understanding of its Business Interruption Exposures
A global telecoms network equipment manufacturer was keen to identify its internal and external suppliers’ exposure to business interruption risks. The manufacturer needed detailed exposure data to help inform its risk management decisions and direct its thinking about insurance limits.
The business has huge annual investments in R&D to produce the Application-Specific Integrated Circuits (ASICs) and software used to run its equipment. This technology is the lifeblood of the business and the ‘brains’ behind the products.
Consequently, the business holds many patents to protect its intellectual property. It relies heavily on outsourcing, particularly for chipset production. It also buys third-party patented ASICs that work with its products.
The business has many owned production facilities plus a range of Electronics Manufacturing Services (EMS) providers. This diverse supply created the need for a detailed supply chain exposure assessment.