Man-Made Risk Example: Ford Supplier Fire
In May 2018, a major fire at Meridian Magnesium Products of America significantly impacted American automaker Ford. Due to a parts shortage caused by the fire, Ford had to temporarily halt production of one of its most popular pickup trucks.
In addition to halting production of the truck, which accounted for one-third of the total vehicles the company sells each month, they had to temporarily suspend 7,000 workers.
By market closing on the day of the announcement, Ford's stock had fallen by nearly 2%.