SUPPLY CHAIN RISKS: LITERATURE REVIEW AND A NEW CATEGORIZATION

Identification of risks is the first step to build a resilient and sustainable supply chain and develop proactive risk management strategies. Supply chains contain numerous risks with different forms, probabilities and impacts. Supply chain risks have a multi-dimensional nature and can result from a wide variety of sources including demand and supply variability, poor performing suppliers, price fluctuations, dynamic consumer markets, global economic uncertainty, and even unexpected events such as work accidents, cyber-attacks and natural disasters.  Supply chain risks may cause business interruptions, financial losses, a negative corporate image and, damages to human health and safety. The purpose of this paper is to present a literature review on the risks and their sources in supply chains and develop a new categorization for supply chain risks. The proposed categorization provides a starting point for risk management and may assist practitioners in identifying risks.