Supplier risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings that are caused by the organization's supply chain. The chief risk officer (CRO) is typically in charge of building the organization's supplier risk management strategy and measuring its success. The goal of the supplier risk management strategy is to reduce risk in the supply chain and gain a better understanding for how the organization should respond to problems that can arise. Supplier risk can emerge in the beginning of a new supplier relationship, during mergers, integration of supply chains, disasters, and threats.
Researching Supplier Risk Management. Check out our blog: Strategic Supplier Risk Management: Value Beyond the Assessment. Also check out our vendor risk management checklist.