All supply chain activity involves some degree of risk. Identify six potential sources and causes of risk in global supply chains.

Every supply chain activity involves risk. Six

Supply chain activities are subject to risk. Globalized supply chains have a higher chance of being exposed due to the complexity of their supply chains. There are many potential sources of and possible causes for risk within global supply chains.

1) Natural Disasters: When natural disasters occur, they can severely disrupt the operations of businesses by destroying infrastructure and disrupting transport routes. This could lead to delays in goods delivery.

2) Political instability. Uncertainty in the government’s policies and regulations could have an impact on international trade. This can lead to losses due to sudden tariffs or currency fluctuations.

3) Bad communication: A lack of information between the different involved parties in a process could lead to delays and even create opportunities for wrong decisions.

4) Social issues. Rising labor costs, or a shortage of skilled workers may make it difficult for suppliers to meet customer demand. Deliveries might be delayed which could cause major disruptions.

Cybersecurity threats

6) Supply & demand shifts: Rapid changes amount demand for certain products/services could catch companies by surprise leaving them unable properly adjust their strategies order cope with situation thus resulting financial losses overall.

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