What kinds of risks are associated with supply chain management?

Supply chain management involves the coordination and movement of materials, products, and information among various stakeholders. As such, it inherently carries a range of risks that can impact operations, costs, and overall effectiveness.

The correct choice identifies supply chain disruptions and compliance risks as critical concerns. Supply chain disruptions can arise due to various factors such as natural disasters, geopolitical issues, transportation delays, or vendor failures. These disruptions can halt production, lead to inventory shortages, and ultimately affect the company’s ability to meet customer demand.

Additionally, compliance risks are significant in supply chain management, as organizations must adhere to various regulations and standards related to sourcing, environmental impact, labor practices, and product safety. Failure to comply can result in legal penalties, financial loss, and damage to the company’s reputation.

The other options, while they may represent risks in broader contexts, do not encompass the primary risks directly associated with supply chain management. Environmental and regulatory risks, customer satisfaction and employee morale risks, and marketing and branding risks might play a role in different aspects of business operations but are not as central to the specific challenges faced in supply chain management as disruptions and compliance issues. Focusing on disruptions and compliance provides a more accurate portrayal of the complexities and vulnerabilities present in an organization