Which consequence can result from neglecting supply chain risk management?

Neglecting supply chain risk management can lead to potential disruptions affecting operations, which is a critical consequence. When organizations do not actively manage risks within their supply chains, they become more vulnerable to various unforeseen events such as natural disasters, supplier failures, market volatility, and geopolitical issues. These disruptions can halt production, delay deliveries, and negatively impact customer satisfaction and company reputation.

Effective supply chain risk management involves identifying, assessing, and mitigating potential risks to ensure continuity and responsiveness. Without this management, organizations may find themselves unprepared to respond effectively to crises, leading to inefficient operations and increased downtime. This illustrates the importance of proactively addressing supply chain vulnerabilities to maintain smooth operational flow and minimize negative impacts on the business.