A company has designed its supply chain so that financial losses in one part of the supply chain will be offset by gains in another part. The company is employing which of the following strategies to address global risk?
A company has designed its supply chain so that financial losses in one part of the supply chain will be offset by gains in another part. The company is employing which of the following strategies to address global risk?
Hedging is a risk management strategy employed to offset potential losses in one part of the supply chain with gains in another. This approach aims to mitigate financial risks associated with global uncertainties, such as currency fluctuations, price volatility, or geopolitical events. By using this strategy, the company can ensure that negative impacts in one area are balanced by positive outcomes in another, thereby stabilizing overall financial performance.
Hedging is a risk management strategy that involves offsetting potential losses in one part of the supply chain with gains in another part. It aims to minimize financial risks associated with global uncertainties such as currency fluctuations, price volatility, or geopolitical events.
Answer is A!
Correct Answer should be "B"
B. Flexibility
Nope. D is correct. Flexibility is adapting to changes