ABSTRACT
This chapter discusses supply chain disruption risk conduction, including the related mechanisms, changes of related path, and assessment of the levels of risk. Economic globalization has made competition among enterprises increasingly intense. Michael Porter proposed the concept of value chain in The Competitive Advantage, which enables enterprises to understand that the value between the upstream and downstream enterprise in supply chains can be added, and collaboration in supply chains can reduce cost and increase profits. Supply chain disruption risk conduction might accumulate, amplify, or mutate through specific risk conduction mechanisms and produce 'contagious effects' and, therefore, ultimately endanger the overall supply chain. The fundamental circumstances related to supply chain disruption risk conduction, including conduction mechanism, conduction path changes, and conduction energy assessment of supply chain disruption risk, which have significant practical implications for supply chain disruption prevention, are discussed. Demand risk is defined as potential disturbance in capital flow, information flow, and logistics in downstream enterprises in supply chains.
