Highlighting the Importance of Considering the Impacts of Both External and Internal Risk Factors on Operational Parameters to Improve Supply Chain Risk Management

Abstract

Operational risk management in supply chain activities is important for the successful achievement of the desired outcomes. Although it is an active area of research with an aim of improving a firm's success in its operations, a drawback of existing approaches is that they analyze it from only the perspective of events local to the supply chain. In this paper, we argue that it is also important for firms in a supply chain to consider external events as they will directly influence the internal ones and use various real-world examples of the risks in different processes of a supply chain as justification to prove our point. We then consider supply chain risk management not only as an operational research process, as do all the relevant survey papers, but a data science problem to gain deeper real-time insights for information risk management. Then, we suggest directions for future research that will assist supply chain risk managers to undertake better supply chain risk management processes.