Supply chain risk management (SCRM) is the process of identifying, assessing, and mitigating risks that can disrupt or negatively impact supply chain operations. It involves proactively managing potential risks to enhance supply chain resilience, minimize the likelihood of disruptions, and improve overall business continuity. Supply chain risks can come from various sources, such as natural disasters, geopolitical events, demand fluctuations, supplier issues, cyber-attacks, and financial crises.
Addressing supply chain risk management is an ongoing and dynamic process that requires collaboration, flexibility, and continuous improvement. By proactively managing risks and building resilience, companies can better navigate disruptions and maintain a competitive advantage in today's complex and volatile business environment.