Which of the following is an example of supply chain risk?

Which of the following is an example of supply chain risk?

• A. Steady demand forecast
• B. Natural disasters
• C. Consistent supplier performance
• D. Well-maintained IT systems

Answer: (B)

Supply chain risk is about events that can disrupt the flow of materials, information, or cash within a supply chain. Natural disasters qualify as an example because they are external, unpredictable events that can shut down production facilities, damage infrastructure, or interrupt transportation, leading to delays, shortages, and cost spikes. The other scenarios describe favorable or controlled conditions that reduce risk: a steady demand forecast helps stabilize planning, consistent supplier performance lowers the chance of disruption, and well-maintained IT systems reduce the likelihood of information or process failures. So, natural disasters demonstrate a true supply chain risk.

Supply chain risk is about events that can disrupt the flow of materials, information, or cash within a supply chain. Natural disasters qualify as an example because they are external, unpredictable events that can shut down production facilities, damage infrastructure, or interrupt transportation, leading to delays, shortages, and cost spikes. The other scenarios describe favorable or controlled conditions that reduce risk: a steady demand forecast helps stabilize planning, consistent supplier performance lowers the chance of disruption, and well-maintained IT systems reduce the likelihood of information or process failures. So, natural disasters demonstrate a true supply chain risk.