Supplier Risk Management Strategy is an organized, systematic approach to identify and assess risks associated with external suppliers and contractors. This strategy seeks to identify, analyze, prioritize and manage the potential financial, operational and reputational risks arising from current and prospective supplier relationships. It involves the identification of threats and opportunities that may occur as a result of non-compliance with contractual obligations or due to changes in business environment, regulations, customer needs or dynamics of the market. The goal is to safeguard and optimize organizational supply chain performance by identifying, assessing, monitoring and responding to risks in an effective manner.