Risk management has become a strategic issue for companies since the early 90s. Risk management involves being able to control risks, or at least prevent them.
The main objectives behind this process are: increasing the competitiveness of a company, and reducing the company's vulnerability to competitors. Companies have invested time, money and intellectual services and have developed various methods to manage risks.
Risk management is organized around the connections of a company. Both the upstream (suppliers) and the downstream (customers) actors are integrated into this optimization process.
However, risk management is not always predictable. Certain risks like the terrorist attacks of September 11 are unpredictable risks. Risk management requires companies to analyze their processes, in order to optimize them. Each department of the company is targeted by this strategic move. Action plans must be made for the strategies, processes (production, logistics, administration etc.), human resources, and dissemination of knowledge and technology. Risk management involves constant evolution, and also monitoring the actions implemented in the past.
A risk management policy of the company can be effective, only if the company acts on time. For this, the company has to set up dashboards with indicators on the risks previously identified. The continuous monitoring will also allow a company to keep its competitive advantage in a changing and unpredictable environment.
Tags: risk management, definition of risk management
[...] A policy of risk management of the supply chain can be effective if the company carries out actions over time. For this, the company set up dashboards with indicators of risk previously defined. This allows continual monitoring to give or keep a competitive advantage to the company in a changing environment that is unpredictable. Definition The word management is a word that, in an economic framework, includes the concepts and actions (technical skills) with the aim to optimize the organization, planning, management and control structures of a company's activities. [...]
[...] Risk management of the supply chain is organized around the connections of a company. Upstream actors (suppliers) and downstream (customers) are integrated in this process of optimization and security of the global environment. Reducing the dependence of the company to an entity of its environment is one of the reasons for it. In this concept, we can define the concept of unforeseeable risks. 11 September). Specifically, risk management requires companies to analyze its processes in order to optimize them. Each department of the company is targeted by this strategic move. [...]
[...] Finally, risk management begins with understanding and discovery of potential risks. The risks do not have the same impact. Each risk must be assessed on two main criteria: the frequency and severity in case of realization. After specifying all the terms that define the concept of risk management of the supply chain we will combine this information to build our definition of this concept. Risk management in supply chain management is aware of the risks and outstanding amounts at a company's processes linking with partners in the supply chain. [...]
[...] Strategic issues Risk management of the supply chain is strategic. We see that the possibilities of failure in the supply chain increases mainly because of globalization and the distances that grow between suppliers and customers. Companies are increasingly aware of their vulnerability. The risks are numerous and can come from many places: strikes, natural disasters, terrorism. We can also discover new forms of danger. Communication and technology improves the possibility of errors or risks can increase along with these tools by bringing solutions resolution. [...]
[...] Later in time, risk management has become an unavoidable topic for logistics and supply chain actors. It is noted that since the attacks of September in the United States that the concept of uncontrollable and unpredictable opened the minds of the companies about the risks. Companies have realized that the impact events suffered generates a significant impact on their business. For this, these organizations have invested in strategies to prevent all potential risks (not just the unpredictable risks).In our day, this concept has evolved into a competitive advantage. [...]
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