Anticipated Reduction in Risks within the Supply Chain Forecasted for Q3
The latest report from the Lehigh Business Supply Chain Risk Management Index (LRMI) sheds light on the current state of key supply chain risks for the third quarter of 2025. The LRMI, a collaborative project between Lehigh University and the Council of Supply Chain Management Professionals, ranks ten broad categories of supply chain risks to help executives prioritise and manage the most pressing threats in their operations.
In the Q3 2025 report, Government Intervention Risk has notably surged and is now the second-highest risk category identified by the index. This increase reflects ongoing concerns about regulations, tariffs, and trade restrictions, underscoring the significant impact that governmental policies continue to exert on global supply chains.
Supplier Risk remains prominently among the top risks, signalling persistent vulnerabilities related to supplier dependencies or disruptions. Despite a slight decrease, Economic Risk remains at an elevated level, with continued challenges such as energy cost volatility, material shortages, and border delays still creating operational difficulties for businesses.
Cybersecurity and Data Risk experienced a slight decline but still holds strong as the fourth-highest risk. This persistence highlights the growing importance of securing digital infrastructure and protecting sensitive information within supply chains.
The LRMI provides a unique feature that allows for a direct comparison of all ten risk categories. In the Q3 2025 report, eight out of ten risks declined, with only Government Intervention Risk, Supplier Risk, and Economic Risk remaining at high levels.
The average risk index decreased, indicating a slight improvement in risk. However, it is important to note that despite the overall decline, certain risks such as government intervention and supplier risk remain significant concerns.
The LRMI enables executives and supply chain managers to anticipate and prepare for risks that will become significant in planning for the next quarter. For instance, the increased focus on government intervention risk underscores the need for businesses to stay abreast of regulatory changes and adjust their strategies accordingly.
In addition to the LRMI findings, recent reports have highlighted other challenges facing supply chains. For example, delays in receiving necessary chemicals have led some supply chain managers to wait up to three weeks for essential supplies. Discretionary spending is also being cut by many supply chain managers due to the ongoing economic uncertainties.
Moreover, there has been an increase in foreign actor cyber-attacks in the past 90 days, further emphasising the importance of cybersecurity measures within supply chains.
The Council of Supply Chain Management Professionals, a key partner in the LRMI, aims to connect, educate, and develop supply chain management professionals throughout their careers. By staying informed about the latest developments in supply chain risk management, professionals can better navigate the complexities of their roles and contribute to more resilient and efficient supply chains.
[1] Source: Lehigh Business Supply Chain Risk Management Index (LRMI) Report, Q3 2025 [3] Source: Lehigh University Center for Supply Chain Research and the Council of Supply Chain Management Professionals
- The Lehigh Business Supply Chain Risk Management Index (LRMI) report revealed that government intervention and supplier risks remain significant concerns among the faculty and alumni at Lehigh University who are engaged in supply chain management research.
- In response to the ongoing challenges in business finance, the Council of Supply Chain Management Professionals, an organization dedicated to educating and developing supply chain management professionals, is emphasizing the importance of securing digital infrastructure and protecting sensitive information within supply chains (cybersecurity and data risk).
- Alumni from Lehigh University, with their expertise in supply chain management, emphasize the need for businesses to stay informed about regulations, tariffs, and trade restrictions (government intervention risk) to adjust their strategies proactively and ensure operational efficiency.
