Exploring the Risk Management Approach in Jordanian Companies: A Logistics Perspective

Abstract

This study aims to discover the effectiveness of risk management system in Jordanian logistics companies by analyzing Profemi Jordan Company, in terms of main sources of risks that have a critical impact on supply chain’s operations and the beneficially of the currently adopted prevention and mitigation strategies. Employing the qualitative approach, data were collected from 150 managers and employees working at Profemi Jordan Company, Amman branch, through conducting in-depth interviews from 2023 until 2024. The findings suggest that suppliers’ reliability and geopolitical threats are the major sources of risks in supply chains. The study shed light on how adopting productive supplier evaluation processes and continuously monitoring different supply chain operations and processes can help companies prevent or mitigate potential risks proactively, which assist with enhancing supply chains’ resiliency and robustness. Lastly, enhancing companies’ risk management strategy required diversifying suppliers and emphasizing cutting-edge technologies to avoid or moderate impacts of potential risks. This study contributes as the first of its kind in exploring qualitatively the risk management approach in Jordanian logistics operations context elucidating major risks sources in supply chains and providing recommendations for decision-makers to improve risk management strategies.