Kathleen (Kate) Wegrzyn, Foley & Lardner LLP partner and chair of the firm’s Supply Chain team, is quoted in the Law360 article, “Extreme Weather, Regulation Rank As Top Supply Chain Risks,” about how extreme weather events, trade policies, and geopolitical tensions pose significant risks to supply chains in 2024.
Referencing a recently published supply chain risk report, Wegrzyn said that the report’s emphasis on natural disasters proved “the time for worrying about force majeure provisions in contracts has not passed.” She continued, “force majeure has permanently moved from boilerplate to a critical risk allocation term, alongside indemnification, and limitation of liability.”
The report also noted protectionist trade policies limiting the flow of technology between countries and geopolitical tensions over Taiwan as top supply chain risks. Wegrzyn agreed these are concerns, and noted that, “The likelihood of export control disruptions may be greater than conflict in Taiwan, but the magnitude of a conflict, were it to happen, would be so much more profound, immediate, and pervasive throughout industries than exporting disruptions, which can be better predicted and managed.”
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