Internal risks in procurement and supply chain may arise due to which of the following reasons? A. Lack of availability of personnel B. Change in customer taste C. Government policies D. Geopolitical issues
Question
Internal risks in procurement and supply chain may arise due to which of the following reasons? A. Lack of availability of personnel B. Change in customer taste C. Government policies D. Geopolitical issues
Solution
Internal risks in procurement and supply chain may arise due to a lack of availability of personnel. This is because personnel are crucial in managing and operating the procurement and supply chain processes. If there is a shortage of staff or if the staff is not adequately trained, it can lead to inefficiencies, errors, and delays, which can pose significant risks.
Changes in customer taste, government policies, and geopolitical issues are typically considered external risks. They are factors that are outside the control of the organization. For example, changes in customer taste can affect the demand for a product, government policies can impose new regulations or restrictions, and geopolitical issues can disrupt supply chains. However, these factors are not internal risks as they do not originate within the organization.
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