work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/ licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any noncommercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2017 Abstract * Not since the end of World War II have supply chains been as highly exposed to risks as they are now. The Fourth Industrial Revolution poses unprecedented challenges for production and distribution systems. It also creates important opportunities, particularly in risk management. Indeed, new digital technologies will foster the emergence of the connected supply chain as a critical element for risk management. Supply chain connectivity is defined as the seamless flow of materials, information, and financial resources along the supply chain, enabled by two factors: information systems connectivity and physical connectivity. This paper analyzes both factors and how new technologies can improve them. It also discusses the barriers that prevent the achievement of a connected supply chain and, with it, improved risk management. Finally, it discusses the role that the public sector can play in overcoming these barriers.JEL Codes: G20, G21, G28, L25, L16