Evaluating the Financial Risks in Global Supply Chain Management
Keywords:
Financial risks, global supply chain management, currency fluctuationsAbstract
This paper evaluates the financial risks associated with global supply chain management, focusing on the complexities and uncertainties that businesses face in an interconnected world. As companies increasingly rely on global supply chains to optimize costs and expand their markets, they are exposed to various financial risks, including currency fluctuations, trade tariffs, supply disruptions, and credit risks from suppliers and partners. This study employs a mixed-methods approach, combining quantitative analysis of financial risk indicators with qualitative insights from industry experts and practitioners. The findings reveal that financial risks can significantly impact operational performance, profitability, and strategic decision-making in global supply chains. Furthermore, the paper discusses risk mitigation strategies, including diversification of suppliers, investment in technology for better visibility, and robust financial planning. By understanding and effectively managing these risks, organizations can enhance their resilience and maintain competitiveness in the global marketplace. The paper concludes with recommendations for practitioners and policymakers to develop frameworks for assessing and mitigating financial risks in global supply chain management.
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