This is according to the Lehigh Business Supply Chain Risk Management Index (LRMI), which noticed a 5.5 point increase in cybersecurity risk worries looking forward to the second quarter of 2024 which started yesterday, compared to the previous one. 

“The supply chain professionals are apprehensive of cyber-attacks, data corruption, data theft, system viruses, and especially how generative AI might increase their companies’ vulnerability,” said Zach G. Zacharia, associate professor of supply chain management and director of the Center for Supply Chain Research at Lehigh.

Generative AI in particular has emerged as a significant factor contributing to technology risk, now ranking second in the LRMI for two consecutive quarters. 

“This is the second quarter in a row that technology risk has peaked, and it’s at its highest ranking in the three years this report has been published,” said Zacharia.

“The rollout of Generative AI increases data risk and the retrieval of potentially incorrect and harmful information,” read the report. 

“Increased threats are likely to continue with the proliferation of AI and global unrest.”

Taking up third place was government intervention, which is likely influenced by active global uncertainties, such as the crisis in and around the Red Sea, and ongoing conflicts in Ukraine and the Middle East. 

Recommended

• Scottish Cities Climbing the Global Financial Centres Index
• Supply Chain is a Prime Ransomware Target, Report Says
• What Are the Top Supply Chain Tech Trends for 2024?

Meanwhile, supplier risk ascended to the fourth spot, driven by concerns surrounding single/sole source suppliers, supplier quality issues, and price volatility.

Despite a slight uptick in the average total risk index compared to the previous quarter, the overall risk level remains relatively low historically.

The index not only compared all 10 risk categories individually, but also compared them to each other. When supply chain professionals took that approach, the top four risks for the second quarter of 2024 are cybersecurity, economics, transportation disruption and customer risk.