What is the main objective of supply chain risk management?

What is the main objective of supply chain risk management?

• A. To create new market opportunities
• B. To outsource non-core activities
• C. To identify, assess, and mitigate risks that could disrupt the supply chain
• D. To enhance customer relationships

Answer: (C)

The main objective of supply chain risk management is to identify, assess, and mitigate risks that could disrupt the supply chain. This involves systematically analyzing potential threats to supply chain operations, including natural disasters, supplier failures, transportation disruptions, and other unforeseen events that can negatively impact the flow of goods and services. By effectively managing these risks, organizations can ensure greater resilience and continuity in their supply chain processes, leading to improved overall performance and stability. Recognizing and addressing potential risks in advance enables companies to develop contingency plans, diversify suppliers, and implement safety stocks or alternative logistics options. This proactive approach minimizes downtime and financial losses, ultimately safeguarding the organization’s reputation and competitiveness in the market.

The main objective of supply chain risk management is to identify, assess, and mitigate risks that could disrupt the supply chain. This involves systematically analyzing potential threats to supply chain operations, including natural disasters, supplier failures, transportation disruptions, and other unforeseen events that can negatively impact the flow of goods and services. By effectively managing these risks, organizations can ensure greater resilience and continuity in their supply chain processes, leading to improved overall performance and stability.

Recognizing and addressing potential risks in advance enables companies to develop contingency plans, diversify suppliers, and implement safety stocks or alternative logistics options. This proactive approach minimizes downtime and financial losses, ultimately safeguarding the organization’s reputation and competitiveness in the market.