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Supply Chain Risk Management: A Review of the Literature
Abstract
The importance of supply chain management (SCM) has been increasing recently and the concept of supply chain risk management (SCRM) has been gradually expanded. Since the concept of risk and uncertainty permeates all organizational functions, risk management would seem to be a crucial step towards safeguarding a company's competitive advantage. In the case of modern supply chains, which are composed of complex relationships necessitated by competitive pressures such as outsourcing and globalization, understanding and implementing risk management processes and initiatives at various levels of the chain is essential (Peck, 2006). The purpose of this chapter is to conduct an extensive and structured review of the supply chain risk management (SCRM) literature in order to understand the importance of the risk management concept in the context of organizational supply chains, identify gaps, and suggest future research areas in this important and growing field.
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