Supply Chain Risk Management Assignment

Running head: SUPPLY CHAIN RISK MANAGEMENT
Supply Chain Risk Management
Name of the Student
Name of the University
Author note

1SUPPLY CHAIN RISK MANAGEMENT
Executive Summary
The report helps in understanding the different concepts of the supply chain risk management
and the consequences as well as trends of the supply chain risk management. The different risks
that are involved have to be discussed as this will help in providing a brief idea on the supply
chain risk management. The Supply Chain Risk Management can be controlled with the proper
implementation of different strategies that will be discussed in the later chapters.
The main aim and purpose of the report is to understand the rooting of the supply chain risk
management in different companies along with analysis of the disruptions in the supply chain
risk management programme as well. The different strategies have to be implemented in order to
reduce the risk in the supply chain management in the companies.
The conclusion will be based on the identification of the different risks involved in the supply
chain management along with the different drivers for removal of the risks of the supply chain
management in different companies as well. This will help in understanding the entire concept of
the supply chain risk management.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Concept of Supply Chain Risk Management...............................................................................3
3. Consequences and Trends of the Supply Chain Risk..................................................................4
4. Supply chain risk Exposures........................................................................................................4
5. Processes of Supply Chain Risk Management............................................................................6
6. Importance of Supply Chain Risk Management..........................................................................7
7. Definition of Risk........................................................................................................................8
8. Five factors of Supply Chain Risk...............................................................................................9
8.1 Reasons of supply chains being so complex and dynamic..................................................11
8.2 Identification of location in supply chain............................................................................12
9. Managing the supply chain risk management...........................................................................14
9.1 Example of mapping of risk................................................................................................15
9.2 Scoring System of analysis of risk.......................................................................................16
10. Different kinds of business risk...............................................................................................17
11. Different kinds of Supply Chain Risk.....................................................................................17
12. Levels of Supply Chain Risk Management.............................................................................18
13. Risk Management Strategies...................................................................................................19
14. Supply Chain Disruptions........................................................................................................20

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15. Vulnerability of Supply Chain Management...........................................................................21
16. Supply Chain Drivers and Risks..............................................................................................21
17. Conclusion...............................................................................................................................22
Bibliography..................................................................................................................................23

4SUPPLY CHAIN RISK MANAGEMENT
1. Introduction
The report helps in understanding the proper meaning of the supply chain risk and the
proper analysis of the different kinds of supply chain risk has to be done as well. The report will
help in analysis of the different techniques to manage the supply chain risks trends as well as
consequences as well. The objectives of the supply chain risk have to be properly identified as
this will help in understanding the compliance as well as requirements.
The main aim of the report helps in understanding the rooting of the supply chain
management in different companies and the different consequences of the disruptions of the
suppliers as well. The risk has to be measured properly in a proactive manner as this will help in
with the help of the contingency options. The main purpose of the report is to properly
understand the different areas of the supply chain risk management in different organizations.
The structure of the report includes different trends and consequences of the supply chain
risk management. The proper importance of the supply chain management has to be analyzed
properly and this will help in analysis of the risk that is involved in the supply chain risk
management. The sources of the supply chain risk have to be properly analyzed as well as this
will help in understanding the different strategies for managing such risks in the supply chain
management.
2. Concept of Supply Chain Risk Management
The supply chain risk management is the synchronized efforts of the different
organizations as this will help in identifying, monitoring, detecting as well as mitigating the
different threats to the continuity of the supply chain as well as the profitability of the supply

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chain risk management. It is based on the assessment of the risk that is continuous in nature with
proper objective of reducing the vulnerability as well ensuring proper continuity. Supply chain
risk management helps in reducing the vulnerability of the supply chain with the help of the
coordinated holistic approach that involves different stakeholders and this will help in
identification of the supply chain exposures1. There are different risk factors in the supply chain
risk management that has to be properly identified and this will help in understanding the
different requirements for reducing such risk as well.
3. Consequences and Trends of the Supply Chain Risk
Trend towards the lean and just in time practices wherein efficiency is essential than the
effectiveness
Trend towards the cost reduction (almost at any kind of costs) wherein globalization of
the supply chain are more vulnerable as well as complex
Trend towards the proper economies of the scale that is related to the centralized
manufacturing and distribution and the cost is lower in nature and less flexible as well.
Trend towards the proper consolidation of different suppliers wherein there is increased
potential for the failure of the supply
4. Supply chain risk Exposures
The supply chain risk management helps in reducing the vulnerability with the proper
help of coordinated approach that is holistic in nature and this involves supply chain
1 Ahi, Payman, and Cory Searcy. "A comparative literature analysis of definitions for green and sustainable supply
chain management." Journal of Cleaner Production 52 (2013): 329-341.