Internal supply chain risks

Internal risks provide better opportunities for mitigation because they are within your business’s control. There are 5 main types of internal risks:

  • Manufacturing risks – caused by disruptions of internal operations or processes
  • Business risks – caused by changes in key personnel, management, reporting structures or business processes, such as the way purchasers communicate to suppliers and customers
  • Planning and control risks – caused by inadequate assessment and planning, which amount to ineffective management
  • Mitigation and contingency risks – caused by not putting contingencies (or alternative solutions) in place in case something goes wrong
  • Cultural risks – caused by a business’s cultural tendency to hide or delay negative information. Such businesses are generally slower to react when impacted by unexpected events.
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