these conditions can be defined as parameters for raising an alert. For example, a financially stable supplier may in fact be about to lose it CEO to retirement – which may cause issues within the management team. Early visibility into that change gives the manufacturer time to ensure it does not affect customers negatively. Based on the criticality of the supplier and the nature of the alert received, the manufacturer can then choose to take necessary action, such as calling or visiting the supplier, increasing monitoring, or moving towards terminating the relationship with the supplier and finding a replacement. Benefits Reducing supplier risk can: Give insight to manufacturers to create defensive and offensive strategies that turn risk into a competitive advantage. Help determine whether or not it is beneficial for a company to conduct a customer intervention and know in advance what the potential outcomes might be for an intervention. Improve competitive position in the market. Lower supplier costs. Position manufacturers to better address customer needs by addressing supplier vulnerabilities before they become apparent. Prevent loss of customer's trust due to data exposure or systems being hacked. See also Third-party management Business intelligence Master data management Risk management Supplier performance management Supply-chain risk management References Further reading Understanding Risk: Avoiding Supply Chain Disruption, IndustryWeek, 11 May 2009 Risk management in business Business intelligence terms Manufacturing Procurement Operational risk