Type of risks



Risks in material, information and financial flows

Risk refers to events with small probability but may occur abruptly, and these events bring substantial negative consequences to the system.


Supply risks

Supply risk is defined as the probability of an incident associated with inbound supply from individual supplier failures or the supply market occurring, in which its outcomes result in the inability of the purchasing firm to meet customer demand or cause threats to customer life and safety.


Strategic and operational risks

Probability of a loss and the importance of this loss for the organization or the individual.

Demand risk; supply risk; regulatory, legal and bureaucratic risk; infrastructure; and catastrophic risk

Risk is the negative deviation from the expected value of a certain performance measure, resulting in undesirable consequences for the focal firm.


Supply risks

Risk can be thought of as the probability that an undesirable event will occur during a certain period in a supply chain and the associated consequences of this event that affect the performance of the supply chain.


Supply, demand and environment risks

Risks can be considered as variables of internal or external environmental uncertainties that reduce the predictability of results.


Operational risks

Risk refers to variations in the distribution of outcomes from expected or agreed targets.


Procedure risks

Control risks

Demand risks

Supply risks

Environmental risks

Risk is the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective value.