Abstract

Supply chain risk management (SCRM) is imperative to achieve business sustainability in the long-term perspective and also to increase companies’ competitiveness. ISO 31000—Risk Management explains in its latest versions the need for companies to integrate a risk management process into their business models. Complementary to this standard, ISO 31010 presents 31 risk tools to guide companies in this task. However, a question of practical application arises as to which tools should be used for each stage of the SCRM process. In view of the raised question, the main objective of this research is to select ISO 31010 tools that can be used in each of the stages (identify, analyze, and evaluate) of the risk management of the import and export process of an automotive industry located in Brazil. For this, the analytic hierarchy process (AHP method) was used in a case study to prioritize the tools to compose the SCRM. As practical implications, this study resulted in the suggestion of a structured risk management process, considering the assessment of key professionals of the department studied in the company.

Highlights

  • Chain risks can generate huge losses for companies

  • The supply chain risk management (SCRM) comes to contribute to business sustainability, by increasing the probability of projects achieving their strategic goals and enabling a shift from the short- and medium-term perspective to a long-term perspective regarding business strategy

  • It is a relatively new subject, and according to Pfohl et al [4], its scope is broader than the traditional risk management process

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Summary

Introduction

Chain risks can generate huge losses for companies. Factors such as increasingly spatially dispersed supply chains, increasing interdependence between companies, shorter life cycles of ever-smaller products, and strategies such as Lean Six Sigma and Just in Time, are examples that have increased the exposure of chains to risk [1,2]. The SCRM comes to contribute to business sustainability, by increasing the probability of projects achieving their strategic goals and enabling a shift from the short- and medium-term perspective to a long-term perspective regarding business strategy. It is a relatively new subject, and according to Pfohl et al [4], its scope is broader than the traditional risk management process. Ritchie & Brindley [11] favor seven stages for SCRM. Because of these variances, De Oliveira et al [12] and Santos & De Oliveira [13]

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