3. Environmental Risk – associated with external and uncontrollable events. Examples can include port and depot blockades, industrial actions, and closure of entire areas due to fire or chemical spillage, and events such as natural disasters (such as earthquakes or volcanic incidents) or terrorist actions. This is covered in more detail later within this section.
4. Business Risks – caused by factors which can include a supplier’s financial or management stability, or the purchase and sale of supplier companies.
5. Physical Plant Risks – a supplier is only capable of the process of supply if their own area is functioning correctly and therefore physical plant risks involve the condition of a supplier’s physical facility and regulatory compliance.
