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The IUP Journal of Operations Management :
Towards a Value-Based Method for Risk Assessment in Supply Chain Operations
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This paper proposes a risk assessment framework as a research road-map, with the aim of developing a protocol that integrates the risk management requirements from the perspectives of the business and the government. The paper considers the viewpoint of value modeling and interprets the risk management problem as a control problem. Four steps of risk assessment are identified in the framework, forming the risk management cycle.

 
 
The supply chain risk management is emerging to be a new research area, as the market place is becoming more and more globalized and the business is increasingly susceptible to various vulnerabilities, which range from supply chain disruption, organized crime, to terrorists attack. This paper addresses the problem of risk management in supply chain operations from the perspectives of the business and the government, and proposes a research road-map.

On the business perspective, a supply chain company is usually affected by the operation of other related organizations in its business network, as its business model has to be built on cooperation with the other organizations. The cooperation is bolstered by economy reciprocity, i.e., for all the economy value or value object (service or product) that one organization provides to another, the former organization should get in return an object of equal value (Weigand et al., 2006). Otherwise, at least one party in the exchange runs the risk of economic losses and the cooperation is then unsustainable. This gives rise to the requirements of controlling the value exchange and monitoring the operations in the related organizations for managing the operational risks (Kartseva, 2008). Moreover, business operations have to comply with the legal regulations enforced by the government authorities (the change of regulation may also imply business disruption).

 
 

Operations Management Journal,Value Modeling, Process Analysis, Uncertainty Estimation and Multi-Criteria Decision Making