Nowadays the turbulent and very competitive business enviroment makes supply chains reassess the way of doing business. Being constantly under pressure from competitors and customers companies are trying to produce more customized products in lower cost, higher quality and with global reach (Ponis & Spanos, 2009, p. 266). Due to this trend the concept of supply chain resilience has been put in the forefront of research in the last years. However it still remains relatively new and unexplored management research area. The objective of this work is to gather and present the main principles for achieving supply chain resilience.
1. Introduction With the development of market economy as well as the shorter and shorter product life cycle, supply chain management is supposed to be more flexible to meet diversified demands of customers. However, increasing variables in supply chain management makes it more challenging to administer the market environment, product quality, quantity and information transferring. While supply chain flexibility is regarded as one of the most effective ways to deal with uncertainty. Therefore, building an open, dynamic and flexible supply chain, for retail chain enterprises, is a good way to reconfigure in accordance with customer demand and be outstand in the field.
The management of strategy risk is therefore very important. Unlike preventable risk, a rules based compliance approach cannot be utilised to reduce strategy risk but rather a system to manage the strategy risk must be implemented so that the chances of the risk actually happening are reduced and controls are in place to effectively contain the risk should it occur. Kaplan and Mikes have identified three approaches in the management of strategy risk; a) Independent Experts Independent experts can be brought in to an organisation to test the boundaries of a company’s risk management strategy by examining possible failures. This in turn will force employees to consider these possibilities prior to review. b) Facilitators This approach is used within organisations that are diverse and complex.
QUESTION 1 Risk management strategy includes adopting of a planned and systematic approach to the identification, evaluation and control of the risks facing the organisation or company. This project management method is used as a strategy of minimising the costs to the company or organisation and disruption to the council caused by undesired events. Below are the five common project risk strategies that workers or project managers use to identify threats on a project: Financial risk management strategy: Financial risk management strategy involves ideas and actions that are taken to counter attack all financial risk that are in line with any company project. These various strategies include important methods. Financial risk management strategies include reviewing the similar project available for evaluating the financial risk during the execution of a projects.
Sammer Kumar, Katie J. Himes and Collin P.Kritzer states that it is very important to any organization for estimating risk related with their supply chain management, therefore, solutions and approach are helpful to manage risk. Tang (2006) defined that natural disaster not only the damage to a supply chain, some examples of human activities such as wars, labor strikes and so on that has effect to supply chain. Poor management system also will influence the flow of supply chain in an organization if the same supplier can have was shut down their organization due to a natural disaster such as floods. Organization could not control the occurrence of natural disasters. Because of supplier lack of financial support and was to close operation, therefore the destruction can be critical and serious on an organization’s supply chain.
While for those hazards with higher effect, they are more likely transferred and prevented. Therefore, risk management provides company a systematic and comprehensive approach to handle uncertainty. It operates as one part of management system in organization. The associated standards and techniques play vital roles in various industry areas of organization to apply for achieve effective risk management. Moreover, an efficient risk management system help organization to shorten down hazards from uncertainty and transfer risks into potential opportunities in business.
a. Threats allow organizations to identify anything that can go wrong b. Vulnerabilities make a system more prone to an attack c. Controls involve protecting vulnerabilities to make an attack unsuccessful IV. RISK MANAGEMENT PLAN When managing a company's risk assessment plan, the proper preparation and information handling can make all the difference in formulating a business continuity strategy. A proper risk analysis procedure can strengthen all organization's comprehensive business continuity plan. • Identify the scope of the risk assessment • Establish ties to earlier formed business impact analysis results • Determine the level of detail to which you plan to conduct the risk assessment • Identify internal and external sources • Secure management approval A well-run IT system that is well configured and managed tends to be more secure.
2. Risk Management Defined: The Economic Times (2017) defines risk management as the proactive identification of potential risks, their analysis and the mitigation of the implications of risk. (http://economictimes.indiatimes.com/definition/risk-management) 4.1 History of risk management: Risk management is an integral aspect of and is synonymous with corporate governance. According to Dione (2013), risk management has relatively new beginnings, with an awareness commencing from post World War II, where risk management was primarily associated with financial risk mitigation, but has now widened it’s scope to various other non-financial risk management events. As individuals and organisations, there is a tendency to underestimate their
Effective risk management strategies allow us to identify our project’s strengths, weaknesses, opportunities and threats. By preparing for unpredicted events, we can be prepared to respond if they arise. To guarantee the project’s success, the manner of which potential risks will be dealt with should be defined clearly so that we can identify, mitigate or avoid problems when we need to do. Successful project managers know that risk management is essential. Accomplishing project goals depends a lot on planning, preparation, results and evaluation that helps achieving strategic goals.
1997, Metters 1997, Lee and Whang 1999, Lee and Tang 2000). Lee (2002) portrayed the uncertainties in supply and demand processes by providing information sharing and coordination as measures for reduction. Sahin and Robinson (2002) proposed a systematic framework for correlating the dimensions of supply chain on a single plane to integrate at the operational level. One extreme is represented by no information sharing and no physical flow coordination between supply chain members. In this scenario, each body operates in self-interest using available internal information.