Assessing and managing risks using the Supply Chain Risk Management Process (SCRMP)

TLDR

Supply chain risk management is an emerging and important topic, yet clear conceptual frameworks and normative guidance are scarce. The paper proposes a comprehensive, coherent, and ready‑to‑use approach for managers to assess and manage supply chain risks. Based on Tummala et al.’s RMP, the approach is structured into phases of risk identification, measurement, assessment, evaluation, mitigation, contingency planning, and control/monitoring via data‑management systems, with specific techniques suggested. Applying the Supply Chain Risk Management Process (SCRMP) enables more effective management of supply chain risks and provides managers with structure and decision support.

Abstract

Purpose The purpose of this paper is to propose a comprehensive and coherent approach for managing risks in supply chains. Design/methodology/approach Building on Tummala et al. 's Risk Management Process (RMP), this paper develops a structured and ready‐to‐use approach for managers to assess and manage risks in supply chains. Findings Supply chain risks can be managed more effectively when applying the Supply Chain Risk Management Process (SCRMP). The structured approach can be divided into the phases of risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and contingency plans; and risk control and monitoring via data management systems. Specific techniques for conducting this process are suggested. Originality/value While supply chain risk management is an emerging and important topic in our dynamic and interconnected world, conceptual frameworks providing a clear meaning and normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such a framework, offering structure and decision support for managers.