Globalisation Of Trade: Global Supply Chain Management: Global Supply Chain Risks (Copy)
Cheat Sheet: 3.2.2 Global Supply Chain Risks
Types of Risks
| Risk Type | Explanation | Example |
|---|---|---|
| Environmental | Harmful impact on environment from supply chains | Deforestation due to palm oil plantations |
| Natural Disasters | Events disrupting production/transport | Earthquake halting Japanese car exports |
| Financial | Currency fluctuations, rising costs | Rising USD making imports expensive |
| Ethical | Poor labour practices, exploitation | Child labour in textile industry |
| Technological | Cyber-attacks, system failures | Hacking into shipping company systems |
| Political | Trade wars, sanctions, instability | US-China trade tariffs impacting electronics |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Importance of Risk Assessment
| Purpose | Explanation |
|---|---|
| Identify Risks Early | Helps businesses plan ahead |
| Minimise Disruptions | Prevents stoppages in production & delivery |
| Protect Reputation | Avoids ethical/environmental scandals |
| Financial Security | Reduces unexpected losses |
| Business Continuity | Keeps supply chain stable even during crises |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Summary
| Key Idea | Takeaway |
|---|---|
| Global supply chains face environmental, natural, financial, ethical, technological, and political risks. | |
| Risk assessment is essential to ensure stability, protect reputation, and maintain operations. |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course