What defines a supply chain risk?

A supply chain risk is defined by events or circumstances that have the potential to negatively affect the performance of a supply chain. This can include a wide range of factors, such as natural disasters, political instability, supplier failures, or fluctuations in demand. By identifying and understanding these risks, organizations can develop strategies to mitigate them, ensuring their supply chain remains resilient and capable of meeting performance targets.

In contrast, the other choices do not accurately capture the definition of supply chain risk. For instance, guaranteed success refers to a certain outcome, which is the opposite of risk since risk involves uncertainty. Trends that enhance supply chain efficiency focus on positive developments rather than potential threats. Opportunities for cost reduction, while beneficial, represent another aspect of supply chain management that does not directly relate to the uncertainties and challenges inherent in risk. Therefore, the correct choice highlights the critical understanding of risk in the context of supply chain management.