Analysis of Supply Chain Risk Management


In supply chain management, most suppliers exist to utilize the global unit for supply chain risk management found in warehouse and retailer operators. The suppliers are located worldwide, and for Walmart, they are from the US, they make purchases for merchandise items and sold locally from the warehouse, online platforms also the shop. In most cases, Walmart purchases merchandise from the producers around the stores and shops, which in that case, the collected merchandise is sold.

Most particular products are categorized as fresh items, brand new items, best quality items. The purchases may represent the percentage of annual sales revenue for numbers for supplies. Again, on the same note, the volume of products fetched from suppliers would allow them to acquire suitable prices from those suppliers. Therefore, suppliers are entitled to conduct the level of standards, more requirements that comply with labor, workers safety measures, and applicable regulations.


Supply chain Risk Management (SCRM) addresses the threats and vulnerability for commercial acquiring of information and communication technology within the use of government weapon systems or information. This task elaborates on how businesses, either small or big enterprises, increase risk exposure as the partner for business-critical has to be fixed in the supply chain link. These would make a clear recommendation on the concerning of best practices. A legal framework defines information systems that are the environment that uses the structure in reviewing (Aroge et al., 2020). From the review conducted in various environments, it was found that most companies are exposed to more risk and appeared to have an increment through inter-organizational networking.

The supply chain constitutes the organization as a partner in the supply chain. Some findings indicate the essence of undertaking risk assessment and consideration of needs for continuity in planning. The capability to obtain suppliers and assortment for volume upon products that wish in offering to customers. This helps our customer to receive more products within a range of required time for supply chain, there is the distribution of products to storage facilities and would again determine part or in-stock levels from the store. The arrangement made in-store makes a complete attractiveness for the merchandise assortment offered to esteem customers and clients

Supply Chain Risk Management

Operational Risk

This kind of risk is considered most vital; it, therefore, caters across most companies and the activities conducted by most businesses. Operation risk inhibits line of operation and has too much with daily activities (Javaid & Siddiqui, 2018). Risk management operation is conducted according to regulations set by the company, where products are sold from a wide variety of international and domestic suppliers. Global sourcing for many products would be sold as a factor for financial performance (Yoon et al., 2017). When meeting the expectation of suppliers in complying with the applicable laws, these include safety laws, anti-corruption laws, and environmental laws. By doing so, there would be an alternative way to meet the required standards for supplier conduct. This would be a vital challenge, especially with more respect for suppliers and better sourcing from abroad.

Moreover, with tariffs and impositions for imported goods, foreign trade policies exist for trade sanctions imposed for concerning countries. There is a limitation when importing specific types of products containing specific materials in other nations may have aspects related to international trade that may control. This may be the effect that affects suppliers may access to goods that may have adverse affection on financial performance.

Hazardous risk

Talking of hazard risk means being possessed at a level where the threat is for life, the environment, or the property. In most cases, the hazard is dormant for potential and has only the theoretical risk for harm. However, if the hazard becomes more serious, it would create a situation that is such an emergence. This affects the supply chain in areas such as billing for insurance services (Yoon et al., 2017). For the case of global logistic insurance, where sourcing is made on international mode, there are more hazardous risks that may come along.

The certainty of high risk may be aroused, including high tariffs, which brings congestion and eventually makes products delay or the product gets distorted. Another risk that may be experienced is the brokerage of product, and since getting other replacements, this may take long thus, making the supply chain not that effective. There is the issue of cyber, and this is all about hacking the system. Such a scenario is very dangerous when it comes to global sourcing and international trade. There is cargo insurance as the major challenge that may be experienced.

Overall supply chain risk management

Financial risk

Financial instability is generally considered an element of risk, and this happens in aspects where most business would not be able to conduct targeted operations. This facilitates a mode of finances at every aspect such that there is the complete end to end complete transaction where there is the payment of invoices, payment of regulations fees, and all those seeking the transaction (Aroge et al., 2020). The risky part of such a scenario is that it would be dangerous to pay, and the other party fails to deliver the goods. These points now put the situation at risk when using the finances. Therefore, when such a scenario occurs, it makes incomplete the process of supply chain risk management.


Risk has become more frequent in today’s business operation; being updated on every kind of risk that may occur in due course is very important. Thus, it would be wise from my opinion that the corrective measures should be taken in greater proportion to prevent such risk. Some measures may be used to reduce the amount of risk (Yoon et al., 2017). There is retention which deals with internal control of products that ensures that products are stored in a clean, cool, and dry place. Transfer where the risk would be directed to the implementation of the strategy to avoid the targeted risk.

This takes the concept of employing an insurance service. Insurance is safer when operating a business, which helps the organization conduct its operation without failure. For instance, when insuring a vehicle or equipment in case of an accident, the business would be insured another car to continue with the activity. Again, there is a mechanism for risk control. This is when corrective measures are implemented, such as fire extinguishers on every building floor or corridor. So, the company would choose to eliminate one supply and go for the other one. If the supplier fails to deliver the product on time, it would be more important to change the supplier at whatever cost to reduce the risk amount.


Aroge, O. O., Rahmanian, N., Hernandez, J. E. M., & Abdi, M. R. (2020). Decision-making model for supply chain risk management in the petroleum industry. International Journal of Decision Sciences, Risk and Management, 9(4), 223. Web.

Javaid, T., & Siddiqui, D. A. (2018). Supply Chain Responsiveness and Supply Chain Performance: The Role of Supply Chain Risk Management. SSRN Electronic Journal. Web.

Yoon, S. J., Park, Y. B., & Yu, J. S. (2017). Prediction and Source Inference of the Global Supply Chain Operational Risk Based on Principle Component Regression. Journal of the Korean Society of Supply Chain Management, 17(1), 77. Web.

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