Question

Strategies to address supply chain risks include:

I. risk avoidance.
II. risk reduction.
III. risk projection.
IV. risk sharing.

Answer 1

Strategies to address supply chain risks include risk avoidance, risk reduction, risk projection, and risk sharing.

Step-by-step explanation:

Strategies to address supply chain risks include:

1. Risk avoidance: This strategy involves avoiding activities or situations that pose a risk to the supply chain. For example, a company may choose to source raw materials from multiple suppliers to reduce the risk of disruption if one supplier faces an issue.
2. Risk reduction: This strategy focuses on minimizing the impact of potential risks. Companies can implement measures such as inventory management systems, demand forecasting, and contingency plans to mitigate risks.
3. Risk projection: This strategy involves forecasting and predicting potential risks to the supply chain. By identifying and analyzing possible risks, companies can develop strategies to address them proactively.
4. Risk sharing: This strategy involves collaborating with partners, suppliers, and customers to share the risks and develop shared risk management strategies. For example, companies may collaborate with suppliers to develop backup plans in case of disruptions.