What constitutes “supply chain risk”?

Supply chain risk refers to the potential disruptions that can occur within the supply chain operations, which might adversely affect overall performance. This includes a variety of unexpected events, such as natural disasters, geopolitical issues, supplier insolvency, or fluctuations in demand. Understanding and identifying these risks is crucial for companies to proactively manage them and implement strategies to mitigate their impact, ensuring a more resilient supply chain.

The other options focus on different aspects of supply chain management. Supplier performance is one component of the overall picture, but it does not encompass the broader concept of risk. Strategies aimed at minimizing costs and methods for improving delivery times are important operational goals, but they do not directly relate to the concept of supply chain risk, which is specifically about the uncertainties that can disrupt operations.