Risk management in supply chain and inventory contexts involves identifying, assessing, and mitigating potential disruptions that could affect product availability, quality, or costs. Risks can arise from supplier failures, natural disasters, demand volatility, or geopolitical factors.A robust risk management strategy includes diversifying suppliers, maintaining safety stock, creating contingency plans, and using real-time monitoring. Effective risk management reduces the likelihood of stockouts, excess inventory, and costly disruptions, thereby enhancing supply chain resilience and operational stability.
