Supplier Risk Assessment Definition
A supplier risk assessment is an evaluation of the potential risks associated with using a particular supplier. The purpose of a supplier risk assessment is to identify and mitigate risks before they result in problems or disruptions.
There are many factors to consider when conducting a supplier risk assessment. Some of the most important considerations include:
-The financial stability of the supplier
-The quality of the products or services supplied
-The supplier’s ability to meet delivery deadlines
-The supplier’s history of customer satisfaction
-The geographic location of the supplier (in case of natural disasters, etc.)
-The political stability of the country in which the supplier is located
