Supply Chain Risk Management
Supply Chain Risk Management (SCRM) is a subfield of Supply Chain Management that aims to assess both everyday risks (such as delays or supply bottlenecks) and exceptional risks (such as environmental disasters or pandemics) along the supply chain and to develop action plans. The goal of a well-founded SCRM is to minimize vulnerability to disruptions and to ensure smooth supply chain processes.
The SCRM is divided into four phases:
- Identification Phase: Identification of potential causes of disruption: Exogenous and Endogenous factors.
- Assessment Phase: Evaluation of the probability of occurrence and the extent of potential damages.
- Control Phase: Containment of risks and minimization of impacts in the event of damage, through action plans and defined processes.
- Monitoring: Monitoring of risks for a responsive and informed reaction to potential risks.