Environmental risks are a mix of those risks, external to the company, customers and suppliers, which is most difficult to predict as it covers the areas of weather, business environment, acts of war, acts of God etc…
They could be accidents, such as a fire, or be a socio-political incident or actions such as fuel protests or terrorist attacks. Acts of God, such as extreme weather or earthquakes can cause severe, if not critical, damage to supply chains.
Environmental risks are everywhere in the supply chain and can impact upon a company’s reputation as well as disrupting production and affecting a business’ overall performance.
