Supplier Risk

Supplier Risk

Supplier risk is the risk that a supplier will not be able to meet its contractual obligations, which could lead to financial losses for the company. There are several factors that can contribute to supplier risk, including financial instability, political instability, natural disasters, and changes in technology.

In order to mitigate supplier risk, companies should perform due diligence when selecting suppliers and continually monitor their performance. They should also have contingency plans in place in case a supplier is unable to meet its obligations.