Resilience And Appit Management: The Theory Of Risk Management

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Kouvelis et al. (2006) view SCRM in terms of managing the uncertainty of demand, supply and costs. Carter and Rogers (2008) define SCRM as “the ability of a firm to understand and manage its economic, environmental, and social risks in the supply chain” which could be materialised by the adoption of contingency planning and having a resilient and agile supply chains.
There are also other notations related to risk management in supply chains. Rice and Caniato (2003) define supply chain resilience as the ability of an organisation “to react to an unexpected disruption and maintain operations after the event”. Resilience can be achieved by employing high flexibility and adequate redundancy in the organisation. A more content oriented definition of resilience as “the ability of a system to return to its original state or move to a new, more desirable state after being disturbed” is provided by Christopher and
Peck (2004). To Peck (2006), resilience brings the concept of an organisation’s “ability to absorb or mitigate the impact of the disturbance”. Contingency planning, which is interchangeably referred to as business continuity planning, is an approach to prepare for the possibility of future emergency or disruption. This approach involves continuous supplier assessment, development and maintenance of …show more content…

Interestingly, they include the time and the frequency of risk along with the common risk dimensions, probability and impact. The risk dimension of time is viewed as the speed of the event, the speed of losses and the time for detection of the events. This time perspective follows the same ideas as in Sheffi and Rice (2005), where the authors describe the disruption profile by associating supply chain performance with time. Both studies stress the significance of time to risk

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