Risk Management 2

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Risk Management Following the terrorist attack of 11, September 2001, the Custom and Borders Protection (CBP) gave rise to the Custom Trade Partnership against Terrorism (C-TPAT) and Container Security Initiative (CSI). According to Blanchard (2010), C-TPAT is an initiative designed by the CBP of the United States to focus on building of supportive relations between customs and the business community. Its primary goal is to advance the security at the borders and the overall supply chain. Besides, it also accelerates the flow of legitimate trade. On the other hand, Bichou, Szyliowicz & Zamparini (2014) define CSI as an exclusive bilateral information transfer system that improves security at the United States ports. This initiative also works with increased cooperation from other countries ports. Clearly, the C-TPAT provides supply-chain security program to the importers voluntarily. Brokers and carriers are also considered in the provision of these services. They are obliged to submit a memorandum of understanding and a security profile questionnaire before engaging in any activity. While using the CSI, non-intrusive inspection of every good that leaves for the United States ports is done by the exporting country using X-ray or Gamma-ray technology. Such technologies are used to ensure that no loss is incurred from the distortion of goods. In reciprocation, the United States government also allows the exporting countries to inspect their imported cargos at the United States ports (Bichou, Szyliowicz & Zamparini, 2014). The inspections are conducted in all host countries. They also cater for the costs incurred to fund the checks. Notably, both initiatives have

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