Which problem is a common supply chain risk?

A common supply chain risk is indeed data breaches. In the context of supply chain management, a data breach may occur when sensitive information is exposed due to inadequate security measures at any point in the supply chain. This risk is significant because suppliers, vendors, and third-party service providers often have access to confidential data, including customer information, intellectual property, and proprietary technologies.

When a data breach takes place, it can lead to various consequences including financial loss, reputational damage, and regulatory penalties. Supply chains are often complex and involve multiple entities, each with differing levels of cybersecurity. Thus, if one part of the supply chain is compromised, it can have cascading effects on the entire system, leading to broader vulnerabilities and data exposure.

The nature of supply chains—often being interconnected and reliant on a network of partners—makes robust security measures critical to protect against potential data breaches, which is why this is recognized as a prevalent risk in supply chain management.