What is supply chain risk management?

Supply chain risk management (SCRM) is the strategic process of identifying, assessing, and mitigating threats that could disrupt the flow of goods, materials, or services across your supply network. It encompasses both internal risks—like equipment failures or workforce shortages—and external threats such as natural disasters, cyberattacks, regulatory changes, or supplier bankruptcies.

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Two colleagues walking together while discussing supply chain risk management.

The traditional approach

Why traditional supply chain risk processes fail

Even advanced supply chains are at risk without real-time monitoring. Hidden supplier dependencies, geopolitical shifts, or regulatory changes can turn small issues into major disruptions. Without structured supply chain risk management, organizations risk operational continuity, customer trust, and financial performance.

The modern approach

Why modern supply chain risk processes get results

A modern, AI-driven SCRM approach goes beyond reacting to problems – it automatically monitors disruptions, assesses impacts on operations and revenue, and triggers real-time responses. Integrating supply chain risk management software helps companies reduce downtime, keep customer commitments, and build an efficient, resilient supply chain.

Evaluating the data

Supply chain disruptions are escalating, and Resilinc's data shows it 

The scale and frequency of supply chain risks are no longer isolated incidents—they’ve become part of daily operations across industries. These challenges aren’t rare exceptions; they’re the new normal.
Regulatory and compliance alerts surge

Compliance alerts rose sharply from early 2023 through early 2024, then climbed even further in the first half of 2025, highlighting intensifying regulatory scrutiny and increasing operational challenges across industries.

A chart showing the surge in regulatory and compliance alerts from early 2023 through the first half of 2025, reflecting growing operational challenges across industries.
Factory fires persist

Factory fires remained the top disruption for the sixth consecutive year, driving shutdowns, insurance claims, and production delays across multiple industries.

A bar chart showing that factory fires remain the leading cause of supply chain disruptions for the sixth consecutive year, causing shutdowns, insurance claims, and production delays.
Labor disruptions increase

Labor disruptions have intensified across industries, driven by workforce shortages, union actions, and shifting economic conditions, leading to widespread operational setbacks and financial strain.

A bar chart showing the increase in labor disruptions across industries, driven by workforce shortages, union actions, and economic changes, causing operational setbacks and financial strain.
Increasing shipments denied under UFLPA

Year-to-date in 2025, the U.S. Customs and Border Protection (CBP) has denied 83% of shipments—5,745 in total, representing over $55 million in value.

A pie chart showing that 83% of shipments have been denied under the UFLPA in 2025, totaling 5,745 shipments valued at over $55 million.

Assessing risk

Categories of risk—and why they matter

To manage risk effectively, organizations need to understand where threats originate. Resilinc organizes risk into four major categories.
1. Internal risks

Equipment failures, labor shortages, IT outages, or cash-flow issues can halt operations. When a quality-control lapse triggered a recall, one manufacturing leader quickly identified affected batches and rerouted production, showcasing effective supply chain risk mitigation that prevented costly delays and protected their brand reputation.

2. External risks

Natural disasters, cyberattacks, pandemics, or trade wars can interrupt your supply chain. When Hurricane Maria hit Puerto Rico, companies without visibility couldn’t respond fast enough—but one global biopharma leader using Resilinc identified at-risk parts in four days and secured $1.5M in inventory, ensuring zero patient disruption.

3. Network risks

Poor coordination among suppliers, logistics, and partners can create major blind spots. After Fukushima, one automotive OEM discovered 6,000+ at-risk parts due to limited sub-tier visibility. With Resilinc, they reduced inventory buffers by 15% and improved response times.

4. Regulatory and environmental risks

Compliance failures, regulatory penalties, or sustainability violations can disrupt operations. Since 2022, over $2.6 billion worth of electronics have been flagged for forced labor risks under UFLPA, highlighting the importance of proactive monitoring.

Knowing the cost

What is the cost of not investing in supply chain risk management?

It’s tempting to delay investment in risk management—but disruptions are accelerating, and the cost of inaction is high. Every disruption avoided through effective supply chain risk mitigation is more than a cost saved—it’s a customer kept, market share protected, and reputation preserved. Companies that stay reactive bet against the odds, while those that build resilience turn risk into advantage.
$ 0 M

Average cost of a major supply chain disruption per year

$ 0 M

30% of disruptions cost more than $5 million each; 16% cost more than $10 million each

0 %

Increase in global supply chain disruptions from H1 2024 to H1 2025 

Understanding the benefits

The benefits of proactive supply chain risk management software

Investing in robust supply chain risk management software enables organizations to withstand and recover from disruptions faster, ensuring products reach customers without delay and operations remain steady—even during global crises.
Enhanced resilience and business continuity
Withstand and recover quickly from disruptions to ensure uninterrupted operations, consistent delivery, and stronger long-term stability.
Cost savings and efficiency
Identify and implement effective supply chain risk mitigation strategies early to avoid costly disruptions, penalties, and emergency expenses while streamlining processes for greater efficiency.
Improved reputation and customer trust
Deliver consistent, reliable performance to strengthen customer confidence, protect brand equity, and prevent erosion of trust.
Competitive advantage
Use superior SCRM capabilities to navigate volatility, enhance reliability, and respond faster to shifting customer demands and market change.
Better decision-making
Leverage real-time visibility and AI-driven insights to make faster, data-backed decisions that balance risk, opportunity, and long-term growth.
Regulatory compliance
Maintain proactive adherence to evolving regulations to avoid fines, minimize legal exposure, and ensure uninterrupted business continuity.

Reducing risk

How can organizations reduce their supply chain risk?

Resilient supply chains are no longer built on inventory buffers, multi-source strategies, and reactive firefighting. Today’s leaders use agentic AI-powered technology and real-time data to predict and prevent disruptions. Start with these 5 foundational steps.

Step 1: Autonomous Mapping

Map your supply chain beyond tier 1

Most companies have limited visibility past their first-tier suppliers. But sub-tier suppliers often represent the greatest risks, especially for critical components.

  • Use autonomous mapping to gain visibility down to the part-site level. This enables faster impact analysis and targeted mitigation efforts when disruptions strike.
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Diagram showing a supply chain bottleneck identified at a Tier 3 supplier, with $14M revenue at risk and a Resilinc prompt to activate alternative sourcing to prevent disruption.

Step 2: EventWatchAI

Monitor global events in real-time

Disruptions are growing in both frequency and severity. Factory fires, strikes, geopolitical conflicts, and regulatory changes now happen daily, costing companies millions in lost revenue, delayed production, and damaged customer trust.

  • Implement AI-powered monitoring (like Resilinc’s EventWatchAI) that tracks 150M+ news sources and categorizes alerts (e.g., labor disruptions, factory fires, cyberattacks).
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Diagram showing alternate suppliers in supply chain for various parts and a Resilinc prompt to activate alternative sourcing to prevent disruption.

Step 3: Risk mitigation

Build predictive and proactive supply chain risk mitigation

70% of supply chain disruptions are preventable with the right foresight. Proactive planning transforms risk from reactive to strategic advantage.

  • Create scenario-based mitigation playbooks, simulate “what-if” disruptions, and enable automated AI-driven workflows to take early action (e.g., pre-order parts, secure alternative suppliers).
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A chat interface displaying data on supply chain parts previously affected by hurricanes, illustrating Resilinc’s What-if Scenario feature.

Step 4: UFLPA Agent

Strengthen regulatory compliance and supplier assessment

Regulatory pressure is rising across industries—forced labor (UFLPA), drug safety (FDA), and emissions (EPA) are just the start. Noncompliance can trigger product holds, shutdowns, or brand damage.

  • Automate compliance tracking with intelligent agents like Resilinc’s UFLPA Agent that evaluate supplier adherence, collect documentation, and flag violations before they stall your supply chain.
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An example Resilinc UFLPA Agent interface displaying Tier 2 supply chain compliance alerts to help identify and mitigate regulatory risks.

Step 5: SCRM program

Establish a cross-functional SCRM program 

SCRM maturity requires alignment across procurement, logistics, legal, compliance, and executive leadership. It’s not just an investment in a new SCRM platform, it’s an operational mindset.

  • Formalize risk governance, train cross-functional teams, and build playbooks, metrics, and accountability. Use expert guidance to accelerate SCRM maturity—cutting timelines from years to months.
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Two business professionals smiling and discussing supply chain topics.

AI offerings

Agentic supply chain risk solutions

Resilinc’s Agentic AI Suite helps you outsmart disruptions with AI agents that monitor, analyze, and act—powered by 15 years of trusted data.
SC Watch
Foundational

Start with intelligent risk detection—powered by AI agents monitoring over 100M+ sources for real-time alerts and impact insights.


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SC Monitor
Core

Advance to proactive risk management with predictive intelligence, tiered supplier mapping, and built-in disruption agent capabilities.

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SC Command
Enterprise

Unlock full-spectrum control with enterprise-wide visibility, multi-tier simulations, and advanced scenario planning to drive resilient global operations.

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Tariffs Agent

Track, assess, and respond to tariff and trade risks with smart, context-aware automation.

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UFLPA Agent

Stay ahead of forced labor enforcement with AI-powered supplier screening and compliance.

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See agentic AI in action​​

The next era of supply chain risk management will be defined not by how well organizations respond to crises, but by how intelligently they anticipate and prevent them. Schedule a free consultation to assess your SCRM maturity, explore our supply chain risk management software, and identify high-impact improvements.

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