Global Supply Chain Disruptions and Their Financial Risk Implications

Abstract

This article examines how global supply chain disruptions translate into financial risk for firms, focusing on the period when pandemic related shocks exposed structural vulnerabilities in global production networks. The main question is how disruptions in sourcing, production and logistics are reflected in firm performance, shareholder value and market-based measures of risk. Using a systematic literature review of peer reviewed studies published between 2019 and 2022, the study integrates fragmented evidence from supply chain management, finance and international business. The results show that disruptions are rapidly transmitted through multi-tier networks, are consistently priced as adverse events by capital markets and are associated with deteriorations in profitability and revenue growth. The discussion synthesizes these patterns through thematic analysis that distinguishes operational channels, financial outcomes and moderating resilience mechanisms. The main findings highlight that supply chain resilience functions as a strategic financial asset and that significant gaps remain regarding long term and emerging market impacts.