Supply chain risk management (SCRM) is the collection of internal practices and processes a business, organization, or other entity engages in to reduce threats along their supply chain. The ultimate goal of all supply chain risk management is to minimize disruptions, whether they come in the form of natural disasters, supply shortages, geopolitical events, or cybersecurity attacks. The National Institute of Standards and Technology (NIST), a government agency focused on advancing American innovation and competitiveness in science and engineering fields, defines the term as a “systematic process for managing supply chain risk by identifying susceptibilities, vulnerabilities, and threats throughout the supply chain and developing mitigation strategies to combat those threats whether presented by the supplier, the supplies product and its subcomponents, or the supply chain.” Over the past decade, as environmental regulations and sanctions programs have expanded throughout the world, SCRM has evolved to address regulatory compliance as well. SCRM professionals use a combination of technological tools and personal expertise to develop a comprehensive grasp of the specific regulatory landscape that applies to their business and industry. This facet of SCRM also entails assessing and mitigating any supply chain stakeholders who are either violating existing directives or are at risk of doing so.
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