Risk comes in many forms, and the risks faced depend on the nature and complexity of the business. The risks can arise from natural disasters and terrorist activities to finance and technological failures that may disrupt the global supply chain. The key is to identify and quantify the specific risks associated with the different types of business and mitigate those identified risks accordingly.
Attributes of Logistic Risks
Logistic risks refer to the risks that are exposed to the logistics operation that hinders a smooth performance for the overall supply chain. Logistic risks can be considered in any form from every global supply chain perspective.It is referred to uncertain probabilities or threat of damages, injuries, liabilities, loss, or any other negative occurrence that is caused by external or internal vulnerabilities. However, risks may be avoided through pre-emptive action.