Supply chain risk
Supply risk · Supply chain resilience
Supply chain risk is the possibility that an event or condition across the network of suppliers, locations, logistics and dependencies disrupts supply, quality, cost, compliance or reputation.
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Simply put
What it means in ordinary work
It is the risk that the chain behind a product or service fails or changes. The organisation may be several tiers away from the cause.
Why it matters
Modern supply chains are interconnected. A disruption at a sub-tier supplier, port or data provider can affect delivery even when the direct supplier looks healthy.
A hypothetical in practice
A hypothetical electronics buyer maps the sources of a critical chip, identifies a single fabrication site and qualifies a second design. The plan includes buffer stock for the transition period.
Common pitfalls
Tier-one supplier mapping can miss critical sub-tier dependence. Go deeper for high-impact categories.
Risk registers can become long lists without owners or actions. Prioritise by impact and test mitigations.
Regional lens
How this lands where you work
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.