Final answer:
Supply chains encounter various risks in different areas, including supply source, logistics, local and global, geographical, environmental, financial, and social factors.
Step-by-step explanation:
Risks Encountered in Supply Chain Operations
a. Supply source risks: These risks involve disruptions in the supply of raw materials, components, or finished products. Examples include a supplier going out of business or facing transportation issues.
b. Logistics risks: These risks pertain to the transportation and distribution of goods. They can include delays, damage to products during transit, or inadequate infrastructure.
c. Local and global: Local risks refer to challenges specific to a particular region, such as regulatory issues or labor strikes. Global risks encompass broader economic and political factors like trade wars or pandemics.
d. Geographical: These risks relate to the unique characteristics and challenges of different locations. For instance, severe weather conditions can disrupt transportation or damage facilities.
e. Environmental: These risks involve the impact of environmental factors on supply chain operations. Examples include natural disasters, climate change, or resource scarcity.
f. Financial: Financial risks include fluctuations in currency exchange rates, market volatility, or credit risks associated with suppliers or customers.
g. Social: Social risks encompass the influence of social factors on supply chain operations. These can include labor rights violations, ethical concerns, or public relations risks.