Supply chain risk encompasses a wide range of hazards that can negatively impact the supply chain’s ability to deliver products and services. These risks can be external—such as natural disasters, political instability, pandemics—or internal, like operational failures, supplier bankruptcy, or cybersecurity breaches. Managing supply chain risk is about identifying these threats, assessing their potential impact, and implementing strategies to mitigate or recover from disruptions. Companies that proactively manage supply chain risk gain competitive advantages by maintaining service levels during crises, reducing financial exposure, and protecting brand reputation.