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Managing risk in global food supply chains

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Supply chains have inherent risk given the number of actors that interface. While there are some chains that have low frequencies of unfavorable events, many continuously face uncertainty. Food production has many uncertainties along the global supply chain. The global nature of the large logistical networks increases its complexity. Two main sources of uncertainty arise: External and internal to the SC. External factors mainly come from nature (such as "El Niño" phenomenon) and from human activities (such as food and nutrition policy and standards). Internal factors mainly come from operations such as a cold chain disruption. Thus, one needs to minimize risk and improve resilience in order to achieve food security and sustainability. It is then imperative that risk management practices be integrated into the supply chain design and management process. This chapter presents an overview of the main risks involved in global food supply chains, as well as some techniques for risk management.


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