The need for risk management increases as globalization of supply chains increases.Group startsTrue or False

Analysis of the Statement

1. Understanding Globalization of Supply Chains: Globalization has led to the development of complex supply chains where goods and services are produced and consumed across multiple countries. This interconnectedness can create various risks such as geopolitical instability, natural disasters, and market fluctuations.

2. Risk Management Importance: As the supply chains become more globalized, the potential for disruptions increases. Risk management is essential to identify, assess, and mitigate these risks. Companies need to ensure continuity, reduce vulnerabilities, and protect their assets.

3. Link Between Globalization and Risk Management: The increased complexity and exposure to diverse risks in global supply chains necessitate enhanced risk management strategies. Effective risk management allows organizations to anticipate challenges, create contingency plans, and ensure better compliance with regulations across different jurisdictions.

Conclusion

Given the above analysis, it is True that the need for risk management increases as globalization of supply chains increases. Companies are compelled to adopt more robust risk management frameworks to navigate the challenges posed by a globalized market effectively.