Which of the following will you put into box 3?

In supply chain risk management, risks are often categorized into a four-quadrant model. "Strategic" risk is a primary category in this model. Strategic risks are those that affect or are created by the organisation's long-term business strategy and objectives. They are typically high-impact and relate to macro-environmental factors such as geopolitical shifts, major changes in customer preferences, significant technological disruptions, or reputational damage. Managing these risks is crucial for the long-term viability and competitive advantage of the entire supply chain. The other options represent the remaining distinct categories in this common framework.

A. hazard: This category typically refers to risks from accidental loss or natural catastrophes (e.g., fires, floods, earthquakes), which are distinct from long-term strategic threats.
B. financial: This category specifically concerns financial exposure, such as currency fluctuations, interest rate changes, or credit risks, which is a separate classification from strategic risks.
D. operational: This category relates to risks in the day-to-day running of the business and its supply chain, such as supplier failure, machine breakdown, or quality control issues.

1. Chopra, S., & Sodhi, M. S. (2004). Managing Risk to Avoid Supply-Chain Breakdown. MIT Sloan Management Review, 46(1), 53–61. (This article outlines categories of supply chain risks, including disruptions and delays, which align with operational and hazard risks, and systemic risks, which encompass strategic and financial elements).

2. Christopher, M., & Peck, H. (2004). Building the Resilient Supply Chain. The International Journal of Logistics Management, 15(2), 1-13. https://doi.org/10.1108/09574090410700275 (This foundational paper discusses sources of risk, categorizing them into internal (process, control) and external (demand, supply, environmental) factors, which map onto the operational, strategic, and hazard classifications).

3. Waters, D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics. Kogan Page Publishers. (Chapter 2, "Types of Risk," explicitly discusses the classification of risks into categories including strategic, operational, financial, and hazard risks as a common framework).