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Risks and supply chains
by Charles S. Tapiero, Alberto Grando
International Journal of Risk Assessment and Management (IJRAM), Vol. 9, No. 3, 2008
Abstract: The increasing relevance of networking in supply chains is altering the perception of corporate risk and of its measurement and management. Supply chains have expanded hand in hand with the opportunities and the new challenges that firms face in assuming their desired place in a changing environment whose 'Nouvelle Donne' include competitive intensity, technological change, globalisation; financial markets but also strategic economic and operational risks; sustainability and risk externalities. However, supply chains have also contributed to an expansion of risks. Supply chain managers have thus an important role in educating corporate managers about what these risks imply, how to measure and value them and 'internalise them' in the costs and benefits calculations. The purpose of this paper is to consider the following risks: risk externalities, external risks, operational risks and strategic risks. Further, we emphasise a measurement approach to risk in supply chains and the motivations of supply chain managers in setting managerial and operational priorities.

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