Supplier risk – putting it in context
Background: Dependence on single suppliers can quickly lead to production outages when disruptions occur.
Dependence on single suppliers can quickly lead to production outages when disruptions occur.
The debate around “Supplier risk” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.
Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.
Several forces are at work in “Supplier risk”: the interest rate environment, domestic and foreign demand, regulation and, not least, market participants' expectations. None of these can be viewed in isolation.
Risks include unexpected political decisions, supply chain disruptions and abrupt shifts in financial market sentiment. Opportunities arise where companies respond early to changing conditions.