Ritchie and Brindley (2007) provided a useful framework consisting of five major
components to manage supply chain risk. First, look at the context and what drives the
supply chain system being studied. Second look at the impact of adverse risk events on
organization members. Third, consider the degree of risk aversion. Fourth, identify
specific risks and their measures, and develop mitigation strategies. This includes
identifying which risks the organization feels competent in dealing with, and which
risks they would prefer to insure against or outsource to others. Fifth, monitor key
performance outcomes.
We have briefly reviewed recently published supply chain risk cases and models.
More detailed analysis of supply chain risks led to their categorization by type. We then considered risk management process, based on a number of recent studies. Finally,
mitigation strategies were considered.
Supply chains are critical to contemporary business, and supply chain risk management is crucial. Many recent supply chain events have occurred in China,
which is growing in importance with respect to international trade. Specific supply chain risk factors in China were presented.