The practice of identifying, assessing, and mitigating risks associated with the supplier base including financial instability, compliance failures, and operational disruptions.
Supplier risk management is the practice of identifying, assessing, monitoring, and mitigating risks associated with an organization's supplier base. Risks include financial instability, compliance failures, operational disruptions, geopolitical events, and natural disasters.
Effective supplier risk management uses a combination of proactive monitoring tools, key risk indicators (KRIs), diversification strategies, and contingency planning. As supply chains become more global and complex, supplier risk management has become a board-level priority. FindMyFactory supports risk mitigation by enabling companies to discover and qualify alternative suppliers across multiple regions.