ABSTRACT
This entry covers the topic of risk in supply chain operations. Events like volcanoes, hurricanes, labor disruptions, and pirates have recently exposed the risk to supply chain operations. The entry describes three generic risk types: those associated with partner selection, external production/logistics, and internal product/logistics. Each requires different methods for preventing or mitigating the consequences. Often, organizations aren't structured to treat these holistically. For example, a buyer seeking the lowest price will agree to terms that lower services levels and supply reliability. The buyer is rewarded but supplier performance is weak.
