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.
As the global economy slowly begins to recover, a new business climate is taking shape that will permanently change the way organizations think about and manage supply risk.
The recent combination of a volatile and down trending economy, the credit crunch, fluctuating raw material and energy costs, global labor challenges, new compliance requirements, political unrest in developing markets and global supplier quality concerns have really created a perfect supply risk storm for virtually all Global 2000 organizations," said Jason Busch, Managing Director of Azul Partners and Editor of Spend Matters.
Cost savings may be job number one today, but the current economic crisis portends an equally disturbing storm brewing on the horizon: heightened supply risk.
The Supply Risk Monitoring (SRM) service (http://srm.
The rating affirmation recognizes the continual strong operational and financial performance and increased crude supply risk from Petroleos de Venezuela S.
To combat this, Aberdeen recommends that companies "implement a supplier performance and risk management technology layer across all business processes to ensure corrective and mitigating actions identified by program objectives are taken and utilize tools to mitigate supply risk and limit financial impact of disruptions.
Risk mitigation and outsourcing: Alternative models for managing supply risk
In addition, SunOpta's global supply sourcing capabilities are expected to generate significant benefits to Hess's customers via year-round global supply risk management, consistency of supply and cost efficiencies.
The rating affirmation recognizes that the credit profile of MSLP has improved appreciably, exceeding the financial norms for the rating category, while crude supply risk has also heightened.
In addition Verticalnet will provide a hands-on demonstration of and review best practices in supply risk assessment, containment and tracking.