Risk management
Risk management is the process whereby decisions are made to accept a known or
assessed risk and/or the implementation of actions to reduce the consequences or
probability of occurrence. Generally used actions for risk management are to avoid,
reduce, transfer, share or even take the risk. To avoid is to eliminate the types of event
that could trigger the risk. To reduce applies both to reduction of probability and
consequence. Examples of how to reduce the impact could be to have an extra
inventory, multiple sources, back-up sites/resources identified, sprinklers in buildings,
having risk managers and emergency teams appointed, parallel systems or to
diversify. Probability could be reduced by improving risky operational processes, both
internally and in cooperation with suppliers, and to improve related processes, e.g.
supplier selection. Risk could also be transferred to insurance companies – but also to
supply chain partners by moving inventory liability, changing delivery times of
suppliers (just-in-time deliveries) and to customers (make-to-order manufacturing), or
by outsourcing activities. Furthermore, contracts can be used to transfer commercial
risks. Finally, risks could be shared, both by contractual mechanisms (e.g. Tsay et al.
(1998) or Cachon (2002), for a review on supply chain contracts) and by improved
collaboration.
Risk managementRisk management is the process whereby decisions are made to accept a known orassessed risk and/or the implementation of actions to reduce the consequences orprobability of occurrence. Generally used actions for risk management are to avoid,reduce, transfer, share or even take the risk. To avoid is to eliminate the types of eventthat could trigger the risk. To reduce applies both to reduction of probability andconsequence. Examples of how to reduce the impact could be to have an extrainventory, multiple sources, back-up sites/resources identified, sprinklers in buildings,having risk managers and emergency teams appointed, parallel systems or todiversify. Probability could be reduced by improving risky operational processes, bothinternally and in cooperation with suppliers, and to improve related processes, e.g.supplier selection. Risk could also be transferred to insurance companies – but also tosupply chain partners by moving inventory liability, changing delivery times ofsuppliers (just-in-time deliveries) and to customers (make-to-order manufacturing), orby outsourcing activities. Furthermore, contracts can be used to transfer commercialrisks. Finally, risks could be shared, both by contractual mechanisms (e.g. Tsay et al.(1998) or Cachon (2002), for a review on supply chain contracts) and by improvedcollaboration.
การแปล กรุณารอสักครู่..