The purpose of this paper seeks to identify and explore numerous supply chain disruption risks that affect an organization’s financial status. This paper will illustrate the need to mitigate financial risk within the supply network through supply chain risk management (SCRM). The financial risks examined help demonstrate the importance and need for supply chain risk management. The approach to this paper utilizes academic journal sources and real world examples to highlight the various risk areas of supply chains. The financial effects of supply chain disruptions from fluctuating supply and demand are examined. The supply and demand disruption types that are discussed include supplier issues and product contamination, bullwhip effect and supply shortages, natural disasters, labor issues, and market risk.
Today’s growing supply chain disruptions create highly impactful financial risks for companies including business interruption, plummeting stock prices and market capitalization for public companies, and in extreme cases, bankruptcy.
The value of knowing the financial risks of supply chain disruptions can help prepare companies to enable and improve upon their supply chain risk management (SCRM).
Today’s growing supply chain disruptions create highly impactful financial risks for companies including business interruption, plummeting stock prices and market capitalization for public companies, and in extreme cases, bankruptcy.
The value of knowing the financial risks of supply chain disruptions can help prepare companies to enable and improve upon their supply chain risk management (SCRM).
