The results of the Lehigh Business Supply Chain Risk Management Index for the 4th quarter of 2025 indicate a decrease in risk, with eight out of ten risk categories showing a decline. Cybersecurity and Data Risk sits at the top of the list with a modest rise.
“This increase in Cybersecurity Risk underscores the persistent and evolving nature of cyber threats in an increasingly digital supply chain environment,” said Zach G. Zacharia, Ph.D., associate professor of supply chain management and director of the Center for Supply Chain Research at Lehigh.
According to the LRMI, Government Intervention Risk remained the second-highest risk, but decreased significantly by six points, suggesting a reduced anxiety over regulatory uncertainty and trade restrictions.
“Supplier Risk, while the third-highest risk, declined by the greatest amount, 12.5 points,” said Zacharia. “That suggests an easing of concerns around sole-source dependencies and geographic concentration, which have dominated supply chain risk assessments.”
Economic Risk continued its downward trajectory, according to the LRMI, reflecting improved conditions regarding energy costs and border delays. Customer Risk remained relatively stable, suggesting continued but manageable uncertainty around demand patterns.
“The overall average risk index dropped substantially, more than three points,” said Zacharia, “representing the lowest risk values in the last three quarters.”
The LRMI was launched in 2020 by the Center for Supply Chain Research at Lehigh and the Council of Supply Chain Management Professionals in order to rank 10 broad categories of supply chain risks. According to Zacharia, the LRMI enables executives and supply chain managers to anticipate and prepare for risks that will become significant in planning for the next quarter. The risk categories are cybersecurity and data, customer, economic, environmental, government intervention, operational, quality, supplier, technological and transportation disruption.
A unique feature of the LRMI is the opportunity to compare all 10 risk categories directly against each other, rather than scoring each one individually. When supply chain professionals take that approach, the top four risks for the 4th quarter of 2025 are government intervention, economics, cybersecurity, and supplier.
Another valuable aspect of the LRMI is that the quarterly reports include a sampling of candid comments from supply chain managers about each risk category, taking you beyond the numbers. Comments from this new 4th quarter report include:
- I believe that we are beginning to see instability in the Gen-AI business.
- AI tools and technologies have increased the number of attempts to hack into our systems. The threat is getting more frequent, more sophisticated and more challenging to detect.
- Geopolitical tensions define the current age! We are trying to get used to the consistent turmoil (building agility) recognizing that there might not ever be a "new normal."
- Onshoring is causing some supply capacity limitations while getting up to speed.
- Uncertainty is impacting global consumers and suppliers.
- Read more comments.
LRMI reports are available every quarter in March, June, September and December.
To get the latest report for free and to find out how supply chain managers can take the LRMI survey for the next quarter 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.
