Titlebook: Managing Supply Chain Risk; ManMohan S. Sodhi,Christopher S. Tang Book 2012 Springer Science+Business Media, LLC 2012 Flexibility.Risk Man

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Risk Identificationuring, storage and internal distribution), and those facing the demand side (distribution and sales). Therefore, we categorize risk motivated by the supply chain management organization: supply risks, process risks, and demand risks.

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Risk Assessment the commitment from its top management. In this chapter, we present a real risk assessment exercise to illustrate an approach for assessing supply chain risks. While this approach is not the only way to access supply chain risks, it does highlight the challenges and opportunities of risk assessment within the organization and its supply chain.

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Tactical Approaches for Mitigating Supply Chain Risks: Financial and Operational Hedginges and currency exchange, as well as supply and demand risks. These financial instruments are designed to hedge against short-term risks, while the operational mechanisms are intended to manage medium- and long-term risks. We also illustrate how firms can reduce risk significantly by combining financial and operational hedging strategies.

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Modeling the Value of Flexibilityited amount of flexibility. In other words, to reduce supply chain risks, companies need to make their supply chains only slightly more flexible. Even without hard data, our analysis can increase a firm’s confidence for making small investments implementing the flexibility strategies described in Chapter 7.

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Strategic Approaches for Mitigating Supply Chain Risksupply and demand and should also help the supply chain become more resilient in the face of “abnormal” risks, i.e., disruptions. This chapter presents various robust supply chain mitigation strategies that many firms have adopted in managing their supply chain risks.