Final answer:
True, the ability of the supply chain to withstand and recover from a disruption or incident is known as Supply Chain Risk Management.
Step-by-step explanation:
True, the ability of the supply chain to withstand and recover from a disruption or incident is indeed known as Supply Chain Risk Management. In the context of business, supply chain risk management refers to the strategies and processes put in place to identify, assess, and mitigate risks that can impact the flow of goods and services from suppliers to customers. It involves anticipating and planning for potential disruptions, such as natural disasters, supplier bankruptcies, or geopolitical events, and implementing measures to minimize their impact on the supply chain.
For instance, during the COVID-19 pandemic, many businesses experienced disruptions in their supply chains due to shutdowns and transportation challenges. Implementing supply chain risk management strategies, such as diversifying suppliers, developing backup plans, and monitoring global trends, could have helped businesses mitigate the impact of these disruptions and improve their ability to recover.
The underlying goal of supply chain risk management is to enhance the resilience of the supply chain, ensuring its ability to function effectively even in the face of disruptions. By proactively identifying and addressing risks, businesses can minimize disruptions, maintain continuity, and enhance customer satisfaction.