Climate & Environment
Supply Chain Risk
The disruption, compliance, reputational and sustainability risks embedded in multi-tier sourcing networks.
Definition
Supply chain risk is the exposure of an organisation to adverse events and conditions arising anywhere in its sourcing network: operational disruption (natural disasters, geopolitics, pandemics, supplier failure), compliance and legal risk (due diligence violations, forced labour import bans), reputational risk (exposés of abuses in lower tiers), and sustainability risk (deforestation, emissions, water stress in sourcing regions). Mapping beyond tier one is the acknowledged weak point — most companies cannot name their tier-three suppliers.
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