The Most Effective Ways to Mitigate Supplier Financial Risk

This is the first in a series of short papers outlining the most disruptive supply chain risks. In this initial paper we look at supplier financial risk and the impact that can have on customers. Financial risk relating to suppliers arises primarily when a supplier (at first tier or elsewhere in the supply chain) runs into financial problems. The paper looks at the drivers of this risk, the consequences for customers, and suggests actions and mitigation strategies.