In downturns, vol travels down the supply chain – study

Customer VAR breaches strike at stressed suppliers, research shows

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Supply chain risk can go both ways. Conventionally, it is the risk that suppliers can pose to a company and its investors. But a new study shows unexpected market risk and volatility can spread to suppliers from major customers, especially in an economic downturn. And, while the findings are derived from historic data, they have lessons for the current climate.

Poor performance and increased volatility betray stress in a traded company. But these will also spread to suppliers, creating similar