Slight Reduction in Supply Chain Risks as Supplier Concerns Persist
The third quarter of 2025 brought a subtle reduction in overall supply chain risks, as reflected in the latest findings from the Lehigh Business Supply Chain Risk Management Index (LRMI). This positive change stems from the decline of eight out of ten risk categories, although Supplier Risk continues to dominate due to ongoing worries about sole-source reliance, geographical concentration, quality challenges, and price instabilities.
Despite the general decline, Government Intervention Risk has climbed to the second-highest concern, emphasizing persistent apprehensions related to regulatory changes, tariffs, and trade barriers. “Government Intervention Risk was the only category to rise, moving into the second-highest risk, highlighting ongoing unease around regulations, tariffs and trade restrictions,” stated Zach G. Zacharia, associate professor and director at the Center for Supply Chain Research at Lehigh.
While Economic Risk experienced a downturn, it remains a significant issue, underscoring continuous hurdles such as energy costs, shortages, and border delays. Similarly, Cybersecurity and Data Risk saw a minor decrease but retains its position as the fourth-highest risk. “The average risk index decreased, indicating a slight improvement in risk,” noted Zacharia, adding that the risk scenario is still “highly dynamic and challenging for supply chain leaders.”
Initiated in 2020 by the Center for Supply Chain Research at Lehigh and the Council of Supply Chain Management Professionals, the LRMI evaluates ten broad categories of supply chain risks. This tool aids executives in forecasting and preparing for significant risks in the upcoming quarter. The evaluated categories include cybersecurity and data, customer, economic, environmental, government intervention, operational, quality, supplier, technological, and transportation disruption.
What sets the LRMI apart is its ability to compare all ten risk categories directly against each other. For the third quarter of 2025, the top risks identified by supply chain professionals are government intervention, supplier, economics, and cybersecurity.
Additionally, the quarterly LRMI reports offer candid insights from supply chain managers, providing a deeper understanding beyond mere statistics. Comments from the latest report include:
- As ocean carriers reconfigure their global networks and ship rotations based on tariffs and ship taxes, this will lead to delivery schedule inconsistency.
- I waited three weeks to make a formulation because I was waiting to receive a $200 chemical.
- This is tricky because tariffs increase risk, but government regulations should decrease; thus, it’s a complicated wash.
- Everyone seems to be cutting discretionary spending.
- We’ve witnessed an increase of foreign actor cyber-attacks in the past 90 days.
- Read more comments.
LRMI reports are released every quarter in March, June, September, and December. For the latest report and information on participating in the next quarter’s survey, visit the Lehigh Business Supply Chain Risk Management Index site.
About the Center for Supply Chain Research at Lehigh
CSCRL bridges theory and practice to promote a collaborative exchange of ideas on critical issues affecting supply chain management. By leveraging Lehigh’s faculty, students, alumni, and industry partners, the Center brings the latest developments in research and best practices together to generate new ideas for education and future knowledge in the field of supply chain management. Learn more.
About the Council of Supply Chain Management Professionals
CSCMP’s mission is to connect, educate, and develop the world’s supply chain management professionals throughout their careers. No matter where you are in your career development, CSCMP has the resources and network to help you achieve your goals. Learn more.
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