Quantifying Sources of Risk in Global Food Operations and Supply Chain

Abstract

The food industry plays a significant role in food supply. However, it is increasingly facing a significant number of risks to tackle. This article provides insight into sources and quantification of risk, which can restrict food operations and supply chain performance. Certainly, risks imposed by today's constantly changing global environment makes it imperative for food and agribusiness firms to develop purposeful proactive and predictive risk management for their global supply chains. We proposed the analytic hierarchy process (AHP) model to analyze sources of risks attached to the focal firm's global food operations and supply chain. The identified risks were from a review of relevant literature, expert opinions from the focal firm supply chain C‐level executive, and consultants in the food industry. We grouped the identified risks into seven categories and discussed the risk mitigation strategies. We validated the proposed model using a case study involving a focal food and agribusiness firm with global presence. © 2016 Wiley Periodicals, Inc.