An integrated approach to supply chain risk analysis

Despite the increasing attention that supply chain risk management is receiving by both researchers and practitioners, companies still lack a risk culture. Moreover, risk management approaches are either too general or require pieces of information not regularly recorded by organisations. This work develops a risk identification and analysis methodology that integrates widely adopted supply chain and risk management tools. In particular, process analysis is performed by means of the standard framework provided by the Supply Chain Operations Reference Model, the risk identification and analysis tasks are accomplished by applying the Risk Breakdown Structure and the Risk Breakdown Matrix, and the effects of risk occurrence on activities are assessed by indicators that are already measured by companies in order to monitor their performances. In such a way, the framework contributes to increase companies' awareness and communication about risk, which are essential components of the management of modern supply chains. A base case has been developed by applying the proposed approach to a hypothetical manufacturing supply chain. An in-depth validation will be carried out to improve the methodology and further demonstrate its benefits and limitations. Future research will extend the framework to include the understanding of the multiple effects of risky events on different processe

Supply Chain Risk Management of the Small-Scale Industry in West Sumatera

The existing cacao industry in West Sumatera is a small scale cacao industry. One of the risks encountered in this industry is that the production does not meet the target and the specification set, resulting in the difficulties for the industry to develop. The objective of the research is to conduct a supply chain risk management in the small scale cacao industry in West Sumatera. . This research used a survey approach method. While the data collected were primary and secondary data. The supply chain management process used descriptive method and Analytic Network Process (ANP). Study on cacao industry chain supply risk source showed indicates that production risks are in the highest priority with a value of 21.78%. The marketing, financial, institutional and human resource risks have the same priority risk i.e. 19.55%. The highest priority of risk types includes the risk of availability of industrial capital, government policy, skills and personal knowledge, and production process cost, with the priority values of 0.102634; 0.101024; 0.099903; and 0.041294 respectively. An alternative risk control priority is to weaken risk (0.39191), and risk segregation (0.25798). Supply chain risk management needs to be held by weakening and segregating risks through improving product management, supply management and information management prioritized on procurement and production processes, thereby enhancing the quality and quantity of processed cocoa products on an ongoing basis. The results of the study can become an input to stakeholders related to the development of small-scale cocoa industry in West Sumatera

Methodology for Designing Decision Support Systems for Visualising and Mitigating Supply Chain Cyber Risk from IoT Technologies

This paper proposes a methodology for designing decision support systems for visualising and mitigating the Internet of Things cyber risks. Digital technologies present new cyber risk in the supply chain which are often not visible to companies participating in the supply chains. This study investigates how the Internet of Things cyber risks can be visualised and mitigated in the process of designing business and supply chain strategies. The emerging DSS methodology present new findings on how digital technologies affect business and supply chain systems. Through epistemological analysis, the article derives with a decision support system for visualising supply chain cyber risk from Internet of Things digital technologies. Such methods do not exist at present and this represents the first attempt to devise a decision support system that would enable practitioners to develop a step by step process for visualising, assessing and mitigating the emerging cyber risk from IoT technologies on shared infrastructure in legacy supply chain systems

Measuring Energy Supply Risks: A G7 Ranking

The security of energy supply has again become a similarly hot topic as it was during the oil crises in the 1970s, not least due to the recent historical oil price peaks. In this paper, we analyze the energy security situation of the G7 countries using a statistical risk indicator and empirical energy data for the years 1978 through 2007.We find that Germany’s energy supply risk has risen substantially since the oil price crises of the 1970s, whereas France has managed to reduce its risk dramatically, most notably through the deployment of nuclear power plants. As a result of the legally stipulated nuclear phase-out, Germany’s supply risk can be expected to rise further and to approach the level of Italy.Due to its resource poverty, Italy has by far the highest energy supply risk among G7 countries.Herfindahl Index, Energy Supply Risk Indicator

Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks

SUPPLY RESPONSE TO RISK: THE CASE OF U.S. PINTO BEANS

A standard model of behavior under uncertainty is used to suggest price risk variables for use in a positive supply study. The suggested variables are intuitively appealing and empirically tested on Pinto bean data. Linearity is assumed and O.L.S. used. The empirical results show that the risk variables greatly improve the statistical fit of the supply equation, are quantitatively important and that a substantial bias occurs if they are neglected. Policy initiatives to reduce Pinto bean price fluctuations need to consider the risk reducing effects on the supply response.Crop Production/Industries, Risk and Uncertainty,

Quasi-Real Indexing-- The Pareto-Efficient Solution to Inflation Indexing

In a pure-exchange economy with one good, stochastic aggregate demand and supply, and consumers having the same relative-risk aversion, Pareto efficiency requires each individual’s consumption to be proportional to aggregate supply. While neither nominal contracts nor pure inflation- indexed contracts provide this proportionality, quasi-real contracts do. Quasi-real contracts adjust for aggregate-demand-caused inflation but not for aggregate-supply-caused inflation, causing their real obligations to be proportional to aggregate supply. When consumers differ in their relative risk aversion, or experience stochastic utility or endowment shocks, they will need insurance and other risk-transfer contracts in addition to quasi-real contracts.inflation indexing, quasi-real indexing