Table 2

Categorisation of supply chain risks

Risk categoryRisk typeDescriptionReference
Supply risksInappropriate supplierRisk of selecting an improper supplierMicheli et al. (2008), Yadav et al. (2018) 
Supplier bankruptcyRisk caused by the insolvency of suppliers, i.e., suppliers have taken orders but are cash-strappedWu et al. (2006), Tse and Tan (2012), Niu et al. (2022) 
Quality of suppliesPlants facing quality issues in their supplies because of suppliers' inabilityTse and Tan (2012), Tse et al. (2011) 
Supplier logistics serviceRisk of owning and operating their own dedicated logistics arm by the suppliersOlson and Dash (2011) 
Logistics outsourcing risks (3PL, 4PL)For a supplier firm, these risks are caused by outsourcing the logistics services to 3PLPerçin (2009), Tsai et al. (2008) 
Risk in custom clearancesRisk related to customs clearances at portsSofyalıoğlu and Kartal (2012), Nachet et al. (2024) 
Operational riskTransportation costsRisk of fluctuating transportation costs due to fuel type used and pricesMacharis et al. (2010) 
Production related issuesThe firms face risks in their production facilities (machine breakdown, material shortage, etc.)Tse and Tan (2012), Tse et al. (2011), Achamrah et al. (2024) 
Inventory costsHigh cost of keeping inventoryTang (2006), Pan et al. (2014), Yan et al. (2023) 
Transit timeRisk related to the variability in the transit timeSofyalıoğlu and Kartal (2012) 
Congestion at port/roadRisk of congestion at ports or roads during the shippingSofyalıoğlu and Kartal (2012), Flores-Franco and Covarrubias (2024), Chargui et al. (2022) 
Information technology failuresRisk faced by the company's information (IT) infrastructure failureBandyopadhyay et al. (1999), Frendi et al. (2024) 
Low visibility and trackingVulnerability issues in supply chains for tracking and tracing the items in transit and transportationChristopher and Peck (2004) 
Demand risksDemand volatilityRisk of stock out or lost sales due to the uncertainty in demand from the market sideChen and Seshadri (2006), Pan et al. (2022), Luo et al. (2022) 
Market changesCompanies are forced to change the target markets/regionsChristopher and Peck (2004) 
Forecasting errorsRisk of forecasting errors on the firm's performance examples include lost sales, high inventory stocks, etc.Wu et al. (2006), Chargui et al. (2019) 
Labor strikeRisk of labour unrest, labour strikes, union strikes, etc.Jüttner et al. (2003), Li et al. (2022), Naganawa et al. (2024) 
External environmental risksNatural disastersRisk of supply chain disruption due to natural disasterOlson and Dash (2011), Wu et al. (2006), Tordecilla et al. (2025) 
Economic downturnThis reflects the consequences of doing business in countries or regions where the economy is at riskOlson and Dash (2011), Harland et al. (2003) 
  Simons (1999), Montreuil et al. (2013) 
Fiscal riskRisk of exposing the firms to financial threats (tax rate, debt condition, etc.)Harland et al. (2003) 
  Cucchiella and Massimo (2006) 
Asset impairment riskRisk of having low asset utilisation by the firmHarland et al. (2003), Simons (1999), Chargui et al. (2022) 
Competitive riskRisk of losing market due to lack of product differentiation, new products, etc.Harland et al. (2003), Simons (1999), Tordecilla et al. (2025) 
Legal, government regulationThey are putting the company at risk of lawsuits from clients, authorities, organisations, etc.Harland et al. (2003), Cucchiella and Massimo (2006), Perez et al. (2024) 
Political instabilityExposing the firms to politically unstable regionOlson and Dash (2011) 
High carbon footprint/greenThe risk of not getting a green supply chain in placeChadha et al. (2022), Niu et al. (2022) 
Terrorist activitiesRisk of having disturbances in supply chain operations due to terrorist activitiesWu et al. (2006), Harland et al. (2003) 
Source(s): Authors’ own work
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