The management of risks has constituted 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.
Tags: Risk Management, Supply Chain Management, Upstream and Downstream actors in the logistics process
[...] Risk management of the supply chain is organized around bonds of a company. Upstream actors (suppliers) and downstream actors (customers) are integrated in this process for the 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 this. In this concept, we can define the concept of unforeseeable risks 11 September). Specifically, risk management requires companies to analyze their processes in order to optimize them. [...]
[...] Later in time, risk management became an unavoidable topic for logistics and supply chain actors. It is noted that since the attacks of September in the United States, the concept of uncontrollable and unpredictable occurrences opened the minds of the companies about the risks. Companies have realized that the impact of 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. [...]
[...] All these choices pose potential risks in the long run. The company must assess its risks to minimize them. We also note that some companies are using risk management as a business case. An example is the strategy of Zero Accidents in workshops. Risk management allows the mangement to ensure a future for the company in preparing for contingencies, but this approach should not be the main objective of the company. It must find a balance between the cost of risk management and cost generated by this risk. [...]
[...] 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 and unpredictable environment. 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. [...]
[...] Strategic issues The risk management of the supply chain is strategic. We see that the possibilities of failure in the supply chain increase 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 such as strikes, natural disasters, terrorism. We also discover new forms of danger. Communication and technology are improving, and the possibility of errors or risks increase along with these tools bringing solutions and resolution. [...]
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