What is Supplier Risk Management?
Supplier risk management identifies, assesses, and manages risks that could arise from working with third-party suppliers. It is a vital part of an organization’s overall risk management strategy as it helps protect against disruptions in supply chain operations, prevent quality issues, and avoid financial losses.
By identifying and evaluating risks associated with supplier relationships, companies can implement the right strategy to mitigate potential risks while improving their overall supply chain resilience.
Supplier risk management protects the organization by minimizing the impact of supplier-related problems. With a robust supplier risk management strategy in place, businesses can protect themselves from potential disruptions or quality noncompliance in the supply chain and ensure that all suppliers operate smoothly and efficiently.
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