Risk Management A Global Supply Chain - 1796 Words

Research Paper: Risk Management in a Global Supply Chain Week 7 Research Paper/TLMT441 D001 Sum 14 Jerry King/Student ID: 4074738 Professor Little Abstract Risk management is a critical component to the success of any supply chain, yet this is still an area that sees little forward movement. In many organizations, risk management is viewed more as a reactive department, only becoming operational when a significant disruption arises in contrast to being an active and continual department with focused effort. As a supply chain moves to take on a global stance, risk management cannot be treated as a reactive measure. Global supply chains are exposed to greater risk than local/domestic supply chains as their linkage is more†¦show more content†¦By reviewing potential community solutions to risk management, supply chain managers will be better postured to develop an effective risk management solution for their organization. Risk management is a continual process that is used by every person throughout their day. It is an autonomous activity, that when an individual is presented with a situation their brain assesses the associated risk and quickly makes a determination as to whether that risk is acceptable; based on the potential benefit or the possibility of an adverse outcome. For just one person, this can be a difficult process and without preparation, the outcome is reliant on chance, as in a toss of a coin. This describes a basic reactionary process; the goal is to develop a proactive stance that eliminates, mitigates, or defers the effects of unknown and unexpected disruption events. Today’s global supply chain has been shaped by the past decades of focus and strategies based on achieving the lowest operational costs coupled with a push towards market expansion and supplier outsourcing. The expansion of global supply chains combined with the increasing number of joined connections to ext ernal business partners has significantly raised the possibility for supply chain disruptions (Poirier, Quinn, Swink, 2010). In today’s global business environment, the importance of risk management continues to grow daily. Several factors must exist up front to