RISK MANAGEMENT IN SUPPLY CHAIN MANAGEMENT AND OPERATIONS

Abstract

The modern day supply chain management is a complex one, which has a lot do with operations management in the area of potential disruptions due to vulnerability to risks. The objective of this paper is to discuss risk management from the standpoint of supply chain and operations. Supply chain network theory forms the theoretical framework of the paper. The applicability of the theory is that it describes holistically the various agents and elements that relate in the supply chain and operations management. The paper relies on secondary data collected from content and documentary evidences in literature. Finding of the paper shows that there are various risks that can potentially affect supply chain management. The risks include but not limited to financial risk, suppliers risk, strategic risk, transportation and storage risks, and human resources. From the standpoint of the risk management processes in supply chain and operations management, further finding indicate that three-step process of risk identification/documentation, risk assessment and risk mitigation are available. One of the recommendations of the paper is that organisations that are into supply chain and management and operations should develop and apply proactive strategies in managing potential disruptions that may result due to vulnerabilities inherent in the ever complex activities in the supply chain and operations management.