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Sustainability and Risk Management in the Supply Chain Name Professor Institution Course Date Executive Summary The paper discusses sustainability in the supply chain and risk analysis. Sustainability in the supply chain is one of the concepts studied in Supply Chain Management…
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Download file to see previous pages Introduction It is important to understand the various concepts of a supply chain in order to comprehend sustainability in a business even further. The chain flows from the initial generator of the raw materials to the final person to benefit from the product, that is, the customer. In any business practice, risks are some of the most important aspects to recognize and the management of these threats helps in making the flow of work better and that of the products faster and thus the importance of carrying out research on how to best manage them. The research identifies three aspects of risk management ought to receive a high amount of attention. One of these is risk identification the other aspect to consider is that of risk assessment and then there is risk management. Problem Statement Occurrence of risks is one of the leading causes of business failure over the past few years. This is happens because of the poor management of the risks by the responsible teams. Managing risk in supply chain management is very vital for the success of any company from the fact that in the unfortunate case of one of the risks occurring, all levels of the supply chain are affected, regardless of the point at which the product was during the risk occurrence (Conroe, 2008, 63). It is thus the duty of every player in the chain to ensure that recognition and evaluation of all risks takes place in an effort to put into place the important strategies to evade the risk. The research aims at showing the different levels of a supply chain and indulge deeply in the risks that each of the level managers go through. Moreover, there ought to be the identification of the two key classes of supply chain risks for the purpose of risk assessment. I chose management of risks in supply chain because I have had various experiences where companies languish from the amount of ignorance portrayed by their administration. An example of this is the BP case where there was the loss of a lot of the company’s credit from the oil spill that happened having the company in a recession for a few months (Adams, 2011, 473). The ignorance is mostly in terms of recognizing the source of the risks. Many are cases when companies fail due to the fact that the management thinks that the problem is a minor one and does not have much weight. However, I seek to change this notion in an effort to make people understand that each part of the chain has a role to play in either the success or the failure of the commodity they seek to establish. It all depends on the type of risk management. The issue at hand has had people always take risk management classes in an effort to solve the various arising matters that may have the company in a position to have a risk occurring. Research has shown that companies that do not take the steps end up regretting and consequently having a poor reputation due to customer dissatisfaction. Gaps in the research are in that it has been impossible to find cases that show immediate resolution of a risk taking place unlike the many present cases of risk occurrence. Risk Identification and Analysis Over the years, supply chain management has had its fair share of changes providing the need of every business to stay keen on its goals in this highly competitive 21st century. The study shows how the external and internal risks are vital for identification in any ...Download file to see next pagesRead More
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