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Examine Various Sources of Supply Risks in an Organisation and Identify Possible Mitigation Measures

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Examine various sources of supply risks in an organisation and identify possible mitigation measures [20] Demand risk relates to potential or actual disturbances to the flow of product, information and cash, originating from within the network, between the focal firm and its market. It is interesting to note that during the current downturn disruptions in the cash resource within the supply chain has had a major impact on the operating capability of organisations.sc Supply risk is the upstream equivalent of demand risk; it relates to potential or actual disturbances to the flow of product or information emanating within the network, upstream of the focal firm. In a similar way to demand risk the disruption of key resources coming into the organisation can have a significant impact on the organisation’s ability to perform
Environmental risk is the risk associated with external and, from the firm’s perspective, uncontrollable events. The risks can impact the firm directly or through its suppliers and customers. Environmental risk is broader than just natural events like earthquakes or storms. It also includes, for example, changes created by governing bodies such as changes in legislation or customs procedures.
Risks internal to the corporation relate both to how the firm addresses the external risks and its competences to plan and execute its own business: Processes are the sequences of value-adding and managerial activities undertaken by the firm. Process risk relates to disruptions to key business processes that enable the organisation to operate. Some processes are key to maintaining the organisation’s competitive advantage while others may underpin the organisation’s activities. It is important to recognise and classify the importance of the various processes to enable effective risk management strategies to be implemented.
Controls are the assumptions,

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