RISK MANAGEMENTRisk Management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.
SUPPLY CHAIN DISRUPTIONSA Supply Chain Disruption is any sudden change or crisis either local or global that negatively impacts that process.
According to Crisis Management International Companies that had prolonged supply chain disruption of 10 days or more had the following impacts:
73% closed or had a significant long term impact
43% never recovered successfully to resume business and Among the recovered,
only 29% were still operating two years later.
TYPES OF RISKS
Risk Mapping is the subjective process where the risks are broadly classified based on risk appearance and risk impact; risk appearance and risk impact.
Risk Prioritization is the ranking of material risks on an appropriate scale, such as frequency and/or severity.