The assumption that as climate change continues to impact the world, the vulnerability of suppliers and the raw materials needed for manufacturing will decrease is called _____________.
A) regulatory risk
B) supply chain risk
C) physical
D) litigation risk

Question

Quizplus · Accepted Answer

The assumption described is related to supply chain risk, which refers to the potential for disruptions or damage to the supply chain. As climate change intensifies, suppliers and the raw materials needed for manufacturing may become more vulnerable to extreme weather events or other environmental impacts, increasing the risk of supply chain disruptions. Regulatory risk relates to changes in laws or regulations that could impact a company's operations or profitability, physical risk relates to damage to physical assets or infrastructure, and litigation risk relates to legal action that could harm a company's reputation or financial performance.

The Assumption That as Climate Change Continues to Impact the World