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While the fallout of the United Kingdom’s decision to exit the European Union has sent shockwaves throughout the political and economic world, Brexit is merely a footnote in the global supply chain risk story. According to the latest risk index from the Chartered Institute of Procurement & Supply (CIPS), the second quarter of 2016 saw worldwide supply risk reach a level not seen since 2013, with confusion as to the true implications of the move fueling widespread uncertainty and fear. Slow global economic growth, particularly in China, and subdued commodity prices are clouding the picture further.
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