Supply Chain Management
Overview
Supply chain and Inventory risk are major components of
Enterprise Risk. There exists risks in the supply
if there are few (or even one) suppliers for the inputs the the product or service that a firm provides. Any disruption to
the suppliers can have major impacts if the firm cannot seek the affected inputs elsewhere.
In addition, firms that carry large inventories are susceptible to large losses in the case of downturns in
the economy of product demand.
Risk Types