Internal and external sources of risk for supply chains

2 Internal and external sources of risk for supply chains 

Supply chain risk can be defined as any risks for the information, material and product flows from original supplier to the delivery of the final product for the end user (Jiittner, Peck and Christopher 2003, pp. 197-210). 

The most common classification of risk sources for a supply chain is a division into internal and external sources. The Research at Cranfield School of Management sponsored by the British Department of Transport has shown that the most important factors affecting the vulnerability of supply chains are (Braithwaite 2003, pp. 6-7)  

Brdulak points out characteristic areas for the external and internal categories of risk sources. In line with the proposed division, external risk factors cover four areas. The first encompasses factors from the macro environment, i.e. the more distant environment. The second area is the meso environment, which includes the situation in the sector and 

The FERMA 2002 Standard (Table 3.5) presents a broad approach to the sources of risk for an enterprise and its relationships with suppliers and customers. According to this standard, four risk types may be distinguished strategic, operational, financial and hazard risks. Each risk type has internal and external sources. The specific risk factors may be internally or externally driven or internally and externally driven at the same time. 

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