Framework of Supply Chain Risk Management and the Instance

Abstract

Supply chain risk management (SCRM) is a process for systematically identifying, analyzing, assessing various risks that can affect supply chains, formulating, executing, and continuously managing strategies and measures to mitigate risks. In this article, a fundamental concept of SCRM and noteworthy supply chain risks, including natural disasters, political and geopolitical risks, information security, exhaustible resources and conflict minerals, environmental and human rights issues, are introduced. In addition, the concept of resilience that is significant in practicing SCRM, as well as essential elements for systematic and continuous practices of SCRM, are discussed. Moreover, a framework of SCRM construction is explained from basic policy formulation and present state analysis, through risk strategy development, monitoring, detection and response plan, to implementation, operation and improvement.