Risk Assessment Model and Supply Chain Risk Catalog

By managing risk on the level of the supply chain we gain insight of all potential threats to all organizations involved in the chain as well as to the supply chain itself, especially to the logistics resources: flow of goods, services and information; logistics infrastructure and suprastructure; and people. Supply chain risk management should represent a crucial activity in every organization. As there is currently no standard specifically aimed at holistic supply chain risk management, we propose the use of a combination of the ISO 31000 family, concerning risk management in general, and ISO 28000 family, concerning safety in supply chains. Both families of standards are described with propositions for effective use in supply chains. Based on supply chain risk management research at Faculty of logistics we developed a model for the activity of risk assessment in the process of risk management in supply chains and organizations. Especially risk identification as a part of risk assessment can be considered the single most important activity in the risk management process, because a risk that is not identified cannot be managed. Our model is the base for the development of the Risk Catalog in Supply Chains, which is already in place and accessible online. Because of the open source philosophy applied to the Catalog, every interested individual can provide their input. We hope that over time with the help of the relevant "community" the Catalog becomes more complete. With the Catalog we propose a solution for risk assessment in organizations. Some aspects of risk assessment can be generalized and are a part of our risk Catalog. Other, organization specific, aspects are described in this article and in the Catalog, but their use and consideration have to be based on a specific organization's context.