What Is Risk Management?

Risk management involves the identifying, assessing and managing of potential threats or disruptions in an effort to minimize the effects of risk. As supply chains expand their global reach and become exposed to a wider range of risks, companies often choose to respond with more robust risk management programs. Innovative risk management tools are a key part of these programs, as is a shift in outsourcing strategies for supply chains. Lack of visibility and related limitations, as well as regulatory compliance are two areas that often cause industry-related risk.