Below is a list describing the physical supply risks:
- Cybersecurity risk is the risk that a supplier’s systems or products are hacked, compromised, or manipulated in ways that disrupt operations or expose sensitive data.
- Physical supply risk is the risk that materials, equipment, or services cannot be delivered when needed due to shortages, transportation failures, or supplier outages.
- Geopolitical risk is the risk that political actions such as trade restrictions, sanctions, conflict, or policy changes in other countries disrupt suppliers or increase costs.
- Climate risk is the risk that extreme weather, natural disasters, or long‑term climate changes damage facilities, interrupt logistics, or reduce supplier reliability.
- Equipment availability risk is the risk that critical equipment cannot be obtained when needed because suppliers lack capacity, inventory, or manufacturing slots.
- Raw materials, commodities, and/or critical minerals risk is the risk that key inputs become scarce, delayed, or more expensive due to supply constraints, market volatility, or concentration of production.
- Lead time risk is the risk that the time required to manufacture and deliver equipment or materials is longer than planned, delaying projects or operations.
- Demand competition from hyperscalers risk is the risk that large technology companies absorb supplier capacity, limiting availability and extending lead times for other buyers. (A hyperscaler is a very large technology company that operates massive data centers at global scale and rapidly expands computing capacity to support cloud services, AI, and digital platforms.)
- Transportation and logistics risk is the risk that goods are delayed or disrupted due to shipping constraints, port congestion, labor actions, transportation failures, climate, or act of war or sabotage.
