Supply risk

Supply risk

The risk associated with a change in raw materials or input to a project from those assumed or projected. In the context of a resources production project, this is called reserves risk.

Supply Risk

The risk that a company will suffer a loss because it becomes unable to buy the raw materials necessary to make its products. For example, a corn mill has the supply risk that not enough corn will grow or farmers will be unable to transport it to the mill or something else will happen that will render the mill unable to provide its services.
References in periodicals archive ?
Yet as companies look to expand their global footprint, supply risk is emerging as a concern for the entire executive suite, not just the procurement or supply management chief.
The purposes of this article are to describe characteristics of inbound supply that affect managerial perceptions of supply risk and to create a classification of those supply risk sources.