Supply chain risk management using software tool

Abstract

Risk management is an integrating part of every supply chain aspect. Unsuccessful risk management can have negative economic and ecologic consequences and cause total or partial lost in the business of a company. Supply Chain Risk Management (SCRM) technology helps managers plan for and handle disruptions in the supply chain. Companies that invest in the emerging field of SCRM technology are less likely to sustain costly supply disruptions or negative press because of the actions of their suppliers. In this paper a model of risk management in supply chain is suggested, according to the international standard ISO 31000:2009 recommendation. An automatic risk evaluation has been performed by software application and as a result 2393 individual risk assessments have been obtained. In this case study the levels of risk factors obtained by risk treatment have been accepted. In order to lessen the subjectivity of the analysts it is necessary to use the same methodology for risk assessment by more than one risk analysts and then to compare their results to provide an objective risk assessment, a key phase in risk management.