What is the primary aim of supply chain risk management?

The primary aim of supply chain risk management is to identify, assess, and mitigate risks that could disrupt supply chain operations. This involves understanding potential threats to the supply chain, whether they are from natural disasters, supplier failures, regulatory changes, or other unforeseen events. By implementing strategies to mitigate these risks, organizations can ensure smoother operations, maintain service levels, and protect against disruptions that can have significant financial and reputational impacts.

Effective risk management within the supply chain allows organizations to prepare for uncertainties, ensuring resilience and stability. This proactive approach helps businesses not only to respond to risks when they occur but also to develop contingency plans that can minimize impact and support continuity of operations.

The other options, while important aspects of supply chain management, do not encapsulate the primary focus of risk management. Increasing product variety, maintaining maximum inventory levels, and enhancing customer purchasing decisions are all valuable objectives within the broader scope of supply chain management, but they do not specifically address the core function of mitigating risks that threaten the supply chain's operational integrity.