Supply Chain Risk Management: An Enterprise View and a Survey of Methods

As supply chains have become more global and complex, supply chain disruptions have become more frequent (Resilinc. Supply chain disruptions- Resioinc’s mid-year report. https://www.resilinc.com/in-the-news/supply-chain-disruptions-resilincs-mid-year-report/, 2021) and severe (Craighead et al. Decision Sciences 38(1):131–156, 2007). It is thus imperative for public and private enterprises to develop and implement strategies to prevent supply chain disruptions from occurring and recover quickly from them when they occur. Enterprises can do so by first establishing an effective supply chain risk management (SCRM) process that identifies, assesses, and proposes strategies to manage and monitor supply chain risks. In this chapter, we review the SCRM process and describe its four stages: risk identification, risk assessment, risk management, and risk monitoring. In doing so, we propose practices and strategies that help enterprises identify, assess, manage (accept, avoid, transfer, or mitigate), and monitor supply chain risks. We also provide examples of how enterprises across industries have implemented SCRM and identify key technologies employed within this process. Finally, we review recent research on behavioral influences in the context of SCRM. The chapter, overall, emphasizes the impact of continued risk for supply chains due to the COVID-19 pandemic. This chapter serves as a resource to academics, students, and practitioners into the SCRM process, actionable strategies employed within each stage of this process, and behavioral factors influencing it.