Sources of Supply Chain Risks

In the following sections, we will discuss the sources of supply chain risks, risk identification and classification, risk prioritization, and risk intervention strategies. 

Risk is inherent in almost all business operations. However, supply chain risks have different characteristics, impacts, and sources. Hence, the risks need to be categorized and different strategies should be developed to manage them effectively. 

As shown in Table 7.2, risks in supply chain to firms are not only from their business partners, but also from customers, internal operations, new technologies, political issues, natural disasters, etc. Some risks can be reduced or even eliminated, but the others are hard to control. How to successfully manage the risks in supply chain becomes more and more critical to firms. Although many companies have realized their importance, few are well prepared because of the complexity of the risk issues in supply chain and the lack of good risk 

External Suppliers Failiues to meet time/quantity/quality requirements Price fluctuations Outmoded technologies 

Internal Human resource Key employees leave Short of employees for suddenly increased demands 

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