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

Abstract

PurposeThe purpose of this paper is to propose a comprehensive and coherent approach for managing risks in supply chains.Design/methodology/approachBuilding 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.FindingsSupply 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/valueWhile 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.