Severe weather like Hurricane Harvey poses unpredictable risks to global supply chains. In 2017, a global manufacturing company with four major suppliers in Southeast Texas, where Harvey hit, saw its production disrupted and $100 million in lost sales when supplies could not be delivered. This document indicates the company's suppliers in Southeast Texas present a future risk that should be managed according to basic risk measures.

1. Severe weather poses one of the greatest threats and the least predictable risks to global supply
chains within our modern globalized economy. Hurricane Harvey major disruptions in the supply
chain and impacted the trucking/transportation industry for several months A global
manufacturing company has four major suppliers located in the region of Southeast Texas where
the 2017 hurricane occurred. In 2017, the company's production was disrupted because supplies
could not be received, and this resulted in the loss of sales of $100 million. Explain whether
these suppliers present a future risk to the company according to the basic risk measures that
should be managed.