Which of the following is NOT a component of supply risk?

The correct answer identifies a component that typically does not fall under the category of supply risk within procurement and supply chain management. Supply risk is commonly associated with uncertainties and potential disruptions that can impact the supply process, including factors related to suppliers, market conditions, and external factors influencing demand and supply dynamics.

Market risk refers to the potential for financial losses due to changes in market conditions, particularly affecting the pricing and availability of supplies. Supplier implementation involves risks related to how effectively a supplier can deliver goods or services, including their operational capabilities and reliability. Reputational risk relates to the potential adverse effects on a company’s reputation arising from various factors, including supplier performance and ethical concerns.

Inflation risk, while a significant economic factor, is not directly a component of supply risk. Inflation risk pertains to the overall economic environment and can affect purchasing power and cost structures but does not specifically address the risks associated with the supply chain itself. Consequently, it does not align with the core components that define supply risk, making it the correct response to the question.