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Supply Chain Risk is the likelihood and consequence of an event, at any point in the end-to-end supply chain, to disrupt the normal flow of supplies and/or result in negative impacts to downstream channel product flows and supporting infrastructure and services. Supply chain risks can manifest in an innumerable amount of ways; however, for practical purposes, supply chain risks can be distilled into the following categories:

  • Process-oriented risks at production sites
  • Supplier-oriented risks at direct or indirect supplier sites
  • Upstream and downstream transportation/logistics risks
  • Operational risks at the agency, department, division, branch, unit or corporate level
  • Regulatory risks (i.e. legislative, compliance, intellectual property, sovereign) at the country or regional level for multinational enterprises
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