Background <p>Digital transformation offers innovative opportunities for enhancing risk management in the agriculture supply chain (RMASC) by leveraging digital technologies to enhance the risk identification, assessment, and mitigation processes for network-wide stakeholders that lead to improved supply chain efficiency and resilience. However, such a significant effort is challenging due to the multifaceted and highly complex nature of the digital transformation process and RMASC. The condition leads to the dynamic behavior of the digital transformation of the RMASC (DTRMASC) system and difficulties in analyzing policy impact. This research addresses the condition by employing a system dynamics approach to investigate the key components of the DTRMASC system along with their nonlinear interrelationships. On top of that, the Analytic Hierarchy Process (AHP) approach was also used to assign the appropriate variable weight required for formulating several components’ relationships. Additionally, this research explored strategies to improve the DTRMASC through simulation. Eventually, this study will also be in line with risk-based thinking to ensure the ability to achieve the desired outcomes from DTRMASC.</p> Results <p>This study developed a Causal Loop Diagram (CLD) consisting of government involvement, enablers for digital technology adoption, digital networking capability, data management, risk management, and digital advancement process sub-models. CLD was then transitioned to a Stock Flow Diagram (SFD) to show the quantitative representation of the DTRMASC system and for scenarios’ simulation. By having simulation using three scenario categories, namely (1) risk management without leveraging digital technology, (2) baseline of DTRMASC, and (3) improved DTRMASC, the findings show that the acceleration of time for the adoption of digital technology and the increase in the enablers of the digital agriculture supply chain are the primary triggers for improved digital transformation. Moreover, policy, ethical issues, and operational costs are the top three factors that influence digital technology preference in order to adopt digital technology.</p> Conclusions <p>Policymakers and agriculture supply chain stakeholders should be informed about the DTRMASC’s dynamicity and its primary triggers for improvement. This information can assist the evaluation and planning processes prior to performing the complex transformational process by highlighting the DTRMASC’s areas that require further improvement.</p>