Supply chain risk management has drawn tremendous attention from academic researchers and practitioners in the recent period. Several attempts were made by the practitioners and academicians to understand supply chain risks and their sources. As the supply chain environment is getting sophisticated day by day, the understanding of supply chain becomes increasingly challenging and need of the hour. This empirical paper attempts to understand the sources of supply chain risk and its effect on supply chain demand management. Survey instrument was administered to collect response from the manufacturing companies in India. Data was analysed with the help of PLS and SmartPLS 2.0 M3 was utilised to compute PLS. The result shows that the variables like supply management capability, supply chain information management and supply chain environmental uncertainty management capability are having positive impact on supply chain risk as well as on supply chain demand management. These findings will provide various insights for the practitioners and be used as a knowledge repository in the area of supply chain risk management. Copyright © 2020 Inderscience Enterprises Ltd.