Operational Risk and Supply Chain Risk Management

Abstract

As described in the previous chapters, risks have been typically divided into four groups, which are strategic, financial, hazard, and operational risks. The consideration of the central role of business processes and the relevance of their effective and efficient management have led us to present operational risk and supply chain risk as explicit topic of this handbook. Risk management is the process devoted to protecting the organization and augmenting its capability to achieve its stated strategic objectives. Operational processes represent the core business of most companies, and therefore the proper assessment of operational and supply chain risks is critical to effective and efficient prevention and protection of an organization. In fact, the successful assessment of these risks can represent an important competitive advantage for the organization.