Supply Chain Risk Management | Risk Management Methodology For Supply Chain

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Supply chain management has many risks, because of its nature of having a long long journey.

Whenever you are working on supply chain risk management, there are few key steps which are followed to identify, calculate, mitigate, avoid and transfer the risk.

1 Step: identify the part, process, resource or the supplier for which you are concerned about, and things could go wrong.

2 Step: think about the effects of risk in chain of supply.

3 Step: quantify the likelihood of risk.

4 Step: quantify the severity of risk impact.

5 Step : calculate the risk index by multiplying step 3 and 4.

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