What is a "Supply Chain Risk Assessment"?

A "Supply Chain Risk Assessment" is fundamentally about identifying and evaluating potential risks and vulnerabilities that could impact the supply chain's effectiveness and efficiency. This involves systematically examining various factors within the supply chain, such as suppliers, logistics, distribution channels, and external risks like economic shifts or natural disasters. By doing this, organizations can proactively mitigate risks that may cause disruptions, financial loss, or inefficiencies, ensuring a more resilient supply chain.

The focus of a Supply Chain Risk Assessment is on understanding where weaknesses lie and developing strategies to address those risks, enhancing the overall stability and reliability of the supply chain. This process is crucial for informed decision-making and long-term planning, enabling businesses to maintain continuity in operations even in the face of uncertainties.