What is supply chain risk management (SCRM)?

<p>Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to <a href=”https://www.techtarget.com/whatis/definition/supply-chain”>supply chain</a> continuity and profitability.</p>
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<p>The supply chain is a network of companies and activities involved in the manufacturing and distribution of goods and services. With SCRM, possible risks, such as natural disasters, geopolitical upheavals, pandemics, cyberattacks and supplier failures, are assessed. By identifying and assessing these risks, organizations can build mitigation strategies to manage and <a href=”https://www.techtarget.com/searcherp/feature/7-techniques-to-build-supply-chain-resilience”>reduce the effect of disruptions</a> on their operations and bottom line.</p>
<section class=”section main-article-chapter” data-menu-title=”Why does SCRM matter?”>
<h2 class=”section-title”><i class=”icon” data-icon=”1″></i>Why does SCRM matter?</h2>
<p>SCRM has become an important business imperative in the volatile global marketplace. It safeguards organizations against costly disruptions that can affect business operations, finances and reputation.</p>
<p>By systematically identifying, assessing and mitigating potential threats across the supply network, SCRM lets businesses maintain <a href=”https://www.techtarget.com/searchdisasterrecovery/definition/business-continuity”>business continuity</a> during unexpected events, such as natural disasters, geopolitical tensions, supplier failures and cybersecurity breaches. The COVID-19 pandemic highlighted SCRM’s importance, as companies with solid <a href=”https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important”>risk management</a> frameworks were more resilient than ones without frameworks, which struggled with the disruptions.</p>
<p>Cybersecurity SCRM (C-SCRM) takes SCRM a step further by addressing the <a href=”https://www.techtarget.com/searcherp/feature/5-supply-chain-cybersecurity-risks-and-best-practices”>cybersecurity

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