Supplier Risk Managementnoun

Supplier risk management assesses the ways a vendor could hurt the business — insolvency, single-site dependency, quality failure, sanctions exposure, data breach, reputational or environmental issues — and puts mitigations in place.

Risk is not spread evenly across suppliers. A small supplier of one critical component can pose far more risk than a large supplier of stationery, which is why risk tiering matters more than spend ranking.