Obsolescence risk is the risk that a process, product, or technology used or produced by a company for profit will become obsolete, and thus no longer competitive in the marketplace. This would reduce the profitability of the company.

Example of Obscelence Risk:-
Within the technology industry, the constantly changing parade of smartphones and the evolution of smartphone technology is another example of functional obsolescence. New smartphones are able to do more and include more features that make old ones functionally obsolete.
 

How to manage the risk of Obscelence?

1. Define a purchasing strategy
    
2.  Rank manufacturers according to their reliability
    
3.  Inform yourself online about the risks of obsolescence.
    
4. Ask your maintenance teams for advice.
    
5. Anticipate the risks of obsolescence in stock.
    
6. Use training to push back the risks of obsolescence.
    
7. Support obsolescence when it becomes inevitable.