Risk can be defined as a “combination of probability or frequency of occurrence of a defined hazard and magnitude of the occurrence” (BS 4778, 1991). Building on several authors that have defined supply chain risk (e.g. Choi and Krause, 2006; Zsidisin et al., 2000, 2004), we conceptualize supply chain risk as an event that adversely affects supply chain operations and hence its desired performance measures, such as chain‐wide service levels and responsiveness, as well as cost. Regardless of the area of interest, risk is associated with an undesirable loss, i.e. an unwanted negative consequence, and uncertainty. Table I presents an illustrative list of supply chain risks, compiled from various prior studies, most notably Chopra and Sodhi (2004) and Schoenherr et al. (2008).