Supply Chain Risk-Value Matrix

The Supply Chain Risk-Value Matrix is a tool used to identify and prioritize risks in the supply chain. It categorizes risks into four quadrants based on their risk and value to the organization.

At a very high level, the Supply Chain Risk-Value Matrix is used in the context of business, supply chain.

Supply Chain Risk-Value Matrix quadrant descriptions, including examples
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What is the Supply Chain Risk-Value Matrix?

A visual explanation is shown in the image above. The Supply Chain Risk-Value Matrix can be described as a matrix with the following quadrants:

  1. High Risk/High Value: Risks that have a high potential to cause damage to the organization, but also have a high potential to bring value (e.g. new technology, new suppliers, new markets)
  2. High Risk/Low Value: Risks that have a high potential to cause damage to the organization, but also have a low potential to bring value (e.g. natural disasters, legal issues, political instability)
  3. Low Risk/High Value: Risks that have a low potential to cause damage to the organization, but also have a high potential to bring value (e.g. new products, new services, new markets)
  4. Low Risk/Low Value: Risks that have a low potential to cause damage to the organization, and also have a low potential to bring value (e.g. minor changes in the market, minor changes in the technology, minor changes in the suppliers)

What is the purpose of the Supply Chain Risk-Value Matrix?

The Supply Chain Risk-Value Matrix is a tool used to identify and prioritize risks in the supply chain. It categorizes risks into four quadrants based on their risk and value to the organization. The four quadrants are: High Risk/High Value, High Risk/Low Value, Low Risk/High Value, and Low Risk/Low Value.

The High Risk/High Value quadrant is for risks that have a high potential to cause damage to the organization, but also have a high potential to bring value. Examples of these risks include new technology, new suppliers, and new markets. These risks should be closely monitored and managed.

The High Risk/Low Value quadrant is for risks that have a high potential to cause damage to the organization, but also have a low potential to bring value. Examples of these risks include natural disasters, legal issues, and political instability. These risks should be monitored, but not actively managed.

The Low Risk/High Value quadrant is for risks that have a low potential to cause damage to the organization, but also have a high potential to bring value. Examples of these risks include new products, new services, and new markets. These risks should be actively managed and monitored.

The Low Risk/Low Value quadrant is for risks that have a low potential to cause damage to the organization, and also have a low potential to bring value. Examples of these risks include minor changes in the market, minor changes in the technology, and minor changes in the suppliers. These risks should be monitored, but not actively managed.


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What templates are related to Supply Chain Risk-Value Matrix?

The following templates can also be categorized as business, supply chain and are therefore related to Supply Chain Risk-Value Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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