Escalating scandal grips airlines including American and Southwest, as nearly 100 planes find fake parts from company with fake employees that vanished overnight::Why are so many flights getting canceled or delayed? Blame a mysterious British supplier accused of falsified documents for plane components.
It’s called outsourcing. You outsource the risk and it magically goes away….
Or does it.
It sort of does. “Our vendor signed legally binding documents that they were responsible for vetting and verifying all parts. Sue them, not us.”
Unless by risk you mean an airplane falling out of the sky…
Risk impact comes in all forms from: it did nothing, to it destroyed our reputation, or even we killed people. Measuring risk impact and understanding the risks are incredibly important and outsourcing & hiding the risks behind a contract can’t protect your company’s reputation or the people killed at the end of the day