Question

TMs (Transportation Management) get migraines for their risks.Summarize those risk areas.

Transportation risk

Product loss

Product damage

Product contamination

Delivery delay

Supply chain interruption

Security breach

Risk mitigation

Risk avoidance

Risk reduction

Risk transfer

Risk retention

Answer 1

Answer:

Transportation risk:

The risk of loss due to the possibility that the infrastructure in an area may be insufficient to complete a project or transport a good. For example, there may be no highways or major roads in an area, which will make it difficult or impossible to transport goods to the area in a timely manner. This may result in a loss to the seller. Infrastructure risk is higher in developing countries or in remote areas of developed countries. It is also called a transportation risk.

Product loss

In industrial operations, a significant quantity of product can be lost into the waste stream. The reason for the product loss can vary from leaky or faulty valves, to vessels overflowing, or to operator errors. Washing processes also create unavoidable product loss.

Product damage

products that are broken, cracked, scratched, etc. informal: a person who is considered to be no longer desirable or valuable because of something that has happened: a person whose reputation is damaged.

Product contamination

Product Contamination. For companies of all sizes, product contamination is a loss exposure that cannot be ignored. Contamination, whether the result of criminal acts or simple human error, is occurring with alarming frequency in the U.S. and around the world.

Product contamination can occur anywhere in the supply chain and is a prevalent risk for many organizations. Food, drink, cosmetics and other ingestible products are susceptible to accidental or deliberate contamination for political or financial gain

Delivery delay

When securities arrive later than the time that they were scheduled to arrive. Usually, this is when securities are delivered beyond five business days of the agreed upon date. Delayed delivery of security is agreed upon in advance between the buyer and the seller of the securities.

The price, quality and delivery date are the most core factors in foreign trade work, but a delay in delivery happens a lot.

Supply chain interruption

Supply chain risk management systems comprise the set of systems and processes used to manage supply chain disruptions. Disruptions are defined as major breakdowns in the production or distribution nodes that comprise a supply chain.

Security Breach

A security breach occurs when an individual or an application illegitimately enters a private, confidential or unauthorized logical IT perimeter. A security breach is also known as a security violation.

Risk mitigation

Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

Risk avoidance

Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization's assets. Whereas risk management aims to control the damages and financial consequences of threatening events, risk avoidance seems to avoid compromising events entirely.

Risk reduction

Measures to reduce the frequency or severity of losses, also known as loss control. May include engineering, fire protection, safety inspections, or claims management.

Risk transfer

Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

Risk retention

Risk retention is a company's decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company. Companies often retain risks when they believe that the cost of doing so is less than the cost of fully or partially insuring against it.