What is typically the focus of supply chain risk management?

The correct answer centers on managing risks associated with supply and demand fluctuations, which is a critical aspect of supply chain risk management. Supply chains are inherently susceptible to various uncertainties, such as changes in consumer demand, supplier reliability, natural disasters, geopolitical events, and more. Effective risk management involves identifying, assessing, and mitigating these risks to ensure that the supply chain operates smoothly and efficiently. By focusing on balancing supply and demand, businesses can minimize disruptions, optimize inventory levels, and enhance customer satisfaction. This proactive approach helps organizations prepare for potential adverse events and maintain a competitive edge in the marketplace.

In contrast, eliminating all supply chain processes would be impractical and detrimental to business operations. Increasing product prices does not directly relate to risk management strategies; it's an outcome that can result from various factors but isn’t the primary focus of risk mitigation. Lastly, reducing supplier contact is not a strategic move in risk management; instead, maintaining strong communication with suppliers is essential for managing risks effectively.