Question Two - Where are these risks hiding?

Most supply chains don’t fail because of a single event.

They fail because risk was already hiding — quietly — in places no one was looking.

In this next series, I’ll explore The 4 Spheres of Risk, revealing where vulnerabilities live inside every modern supply chain:

1. In the Supply Base
2. In the Demand Side
3. In Your Own Supply Chain
4. In the Environmental Landscape

Each post will uncover how these spheres create hidden exposure — and what you can do to strengthen resilience before disruption strikes.

Because when it comes to risk, you can’t manage what you can’t see.

And visibility starts with knowing where to look.

IN THE SUPPLY BASE

Your suppliers can make or break your supply chain.

They are also where many risks quietly begin.

When visibility fades beyond Tier 1, problems often go unnoticed until they become disruptions.

Where do these risks hide?

They often surface in areas like:

• Deliveries: inconsistent or delayed shipments disrupt downstream operations
• Lead times: fluctuating or unreliable timelines distort planning accuracy
• Quality: lack of oversight or process control causes cascading failures
• Fraud: limited transparency can mask unethical or illegal practices
• Bankruptcy: a financially unstable supplier can halt production overnight
• Natural disasters: events in one region can disable multiple critical suppliers

These are not isolated issues — they are connected.

A late delivery can become a production delay, which becomes a lost client.

Mitigating supply base risk requires three essentials:

• Visibility across all tiers
• Diversified sourcing strategies
• Regular, data-driven supplier assessments

When you strengthen your supply base, you strengthen the foundation of resilience.

IN THE DEMAND SIDE

Most organizations spend years managing supply-side risks — but far fewer monitor the demand side with the same intensity.

Yet demand volatility can disrupt your business just as severely.

When the market shifts, even the most stable supply chain can feel the shock.

Where do demand-side risks hide?

They often appear in the form of:

• Losing a key client: revenue concentration amplifies vulnerability.
• Client bankruptcy: exposure to financially weak customers can ripple through your business.
• Natural disasters: regional events can halt demand entirely.
• Man-made disruptions: sudden regulatory, political, or social shifts (COVID being the ultimate example).

The danger lies in overconfidence.

Many companies assume customer demand will remain stable — until it isn’t.

To manage demand-side risk:

• Diversify your customer portfolio.
• Build flexibility into production and fulfilment.
• Monitor financial health and market exposure of key clients.
• Use predictive analytics to detect early warning signs.

Resilience isn’t just about keeping supply flowing — it’s about ensuring demand can be served, sustained, and recovered when the unexpected happens.

IN YOUR OWN SUPPLY CHAIN

External threats often grab attention — but internal weaknesses are just as dangerous.

Some of the most damaging disruptions start inside the organization itself.

Where do internal risks hide?

Often in the everyday details:

• Poor processes: manual workflows, unclear ownership, or inconsistent execution.
• Inadequate tools: outdated systems that limit visibility or delay decision-making.
• Conflicting objectives: when procurement, operations, and finance pursue different KPIs.
• Cyber security gaps: a growing threat as supply chains become increasingly digital.

Internal risks compound external ones.

A cyberattack, a missed signal, or a misaligned goal can magnify an external disruption tenfold.

Strengthening your own supply chain means:

• Embedding risk thinking into every process.
• Aligning teams on shared objectives.
• Modernizing technology for visibility and speed.
• Investing in training to create a risk-aware culture.

You can’t control every external variable — but you can build the internal discipline that allows you to respond faster, smarter, and stronger.

IN THE ENVIRONMENTAL LANDSCAPE

Some risks don’t live within your supply chain — they surround it.

These are the environmental forces shaping the world your network operates in.

This sphere includes:

• Economic: inflation, labour costs, and currency volatility.
• Geopolitical: wars, sanctions, and shifting alliances that reshape trade routes.
• Natural disasters: fires, floods, and storms that halt movement across regions.
• Societal: labour unrest, cultural expectations, and demographic changes.
• Technological: rapid innovation that disrupts industries overnight.

Environmental risks are unavoidable — but they are not unmanageable. The organizations that thrive are those that plan for change before it happens.

To mitigate environmental risks:

• Use scenario planning and “what if” modelling.
• Diversify geographically and operationally.
• Stay alert to global indicators and policy changes.
• Develop crisis playbooks that activate quickly when disruption occurs.

You can’t predict every shock but you can build a supply chain that bends without breaking.

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If you're interested to know more about supply chain risks and how to identify, assess, mitigate and manage them, please visit our education academy, Edukazi, at www.edukazi.com to view our online Supply Chain Risk & Resilience program, consisting of 3 levels.