Supply Chain Risk Management started from the need to better control the risks within Supply and Demand Networks. The processes in (Corporate) Risk Management have been developed and convene in the classic, cyclic processes:
Submitted by Daniel Dumke on Wed, 2011-01-05 13:59
On The Quantitative Definition of Risk
What is risk anyway?
I read this paper already some time ago. It is very important to have a clear definition of the terms used in research. But from my previous experience I know that also in business a clear understanding of the different aspects of risks is important to stay consistent.
Everybody concerned with the task of developing risk mitigation strategies has a list in his mind of different factors influencing a company’s exposure to risk and if you think about it: those factors are probably related.
Example: The number of suppliers for one component can have a huge impact on risk, but the necessity of a high number of (redundant) suppliers may itself be affected by the trust you built with your main supplier. Both trust and having multiple suppliers affect supply chain risk by themselves, but they are also related.
Submitted by Daniel Dumke on Wed, 2010-11-24 17:49
Supply Chain Design: Capacity, Flexibility and Wholesale Price Strategies
Massachusetts Institute of Technology, Dissertation
This is the forth contribution to my series on doctoral dissertations on Supply Chain Risk Management. An immense effort and dedication is spent on these works only to find the results hidden in the libraries. So the goal is raise interest in the research of my peers.
At the moment I am looking for gaps in my reading up to now and I found that I have not read much about information risks. It also seems that those risks are not (yet?) in focus, neither in research nor business. So I was happy to find “Information risks management in supply chains: an assessment and mitigation framework” by Faisal, Banwet and Shankar.
Today I will write about the implications of the risk understanding by managers covered in Part 1 of this series. After observing the mentioned factors on how managers perceive risks the authors categorize their conclusions in three areas.
Today I finally read one of the most cited articles on subjective risk in general. In 1987 March and Shapira set out to shake up the existing theories on the perception and processing of risks by managers. Accordingly, they aggregated the information from various surveys on this topic.
Submitted by Daniel Dumke on Mon, 2010-11-08 15:38
Global Manufacturing Outlook
A current report by KPMG shows that international manufacturers are increasingly considering effects of supplier selection on cost and potential risks. Nearly 200 companies participated globally in the survey. The full report can be downloaded here at KPMG, I just summarized the major findings.
Today I read a rather old article from 1995 about “Organizational Risk Perception and Reduction: A Literature Review” by Vincent-Wayne Mitchell, now at the Cass Business School in London. I present it here since I think most of the concepts and strategies are still valid.