Home > Knowledge > Topics and Skills > Risk / Mitigation > Risk Analysis and Management > Supply Chain Risk Management (SCRM)

Supply Chain Risk Management (SCRM)

Risk management ... should be about lessening the impact of what we don’t understand - not a futile attempt to develop sophisticated techniques and stories that perpetuate our illusions of being able to understand and predict the social and economic environment (Taleb et al.)

Information about Supply Chain Risk Management (SCRM)

Effectively, SCRM is the management of supply chain risks achieved through coordination/collaboration of supply chain partners to ensure profitability and continuity (Christopher, 2004). SCR managers need to assess the risk sources for the supply chain, identify the risk concept of the supply chain by defining the most relevant risk consequences, track the risk drivers in the supply chain strategy and mitigating risks in the supply chain (Juttner et al., 2003). Risk can be defined as ‘the probability of an unwanted outcome happening’ (CIPS: Risk Management in Purchasing and Supply Management). In addition to supply chain coordination SCRM often requires the coordination and collaboration of processes and activities across different organisational functions, such as marketing, sales, production, product design, procurement, logistics, finance and information technology (Tang, 2006). Fast adaptation facilitated by SCRM is one of the most critical supply chain functions, as unexpected developments can bring just-in-time supply chains to an abrupt halt (IBM White Paper, 2008).

Return to Risk / Mitigation topic.

Related concepts

Supply Chain Risk Resilience

Whilst there are a number of BSI and ISO standards developed for business continuity, risk management and organisational resilience there is no global benchmark that can be used to test...

Find out more

Supply Chain Vulnerability

Examining the vulnerability of an organisation’s supply chain network can be used to identify such risks and weaknesses and produce mitigation strategies and corrective action plans...

Find out more

Risk Management in Purchasing and Supply Management

Minimizing risk is crucial for anyone in charge of a complex system, and traditional approaches aren’t good enough (Sargut and McGrath)

Find out more