RISK MANAGEMENT IN GLOBAL SUPPLY CHAINS - HEDGING FOR THE BIG BANG?

There is a growing body of literature addressing supply chain risks and risk management as a source of competitive advantage. However, different authors focus on different elements of risk management making it difficult to get a general idea of the various concepts. But what happens if we concern ourselves with the process of making optimized planning decisions in the face of low frequency, high impact uncertainty, which takes the form of a small or even very small number of discrete scenarios? This paper reviews the literature on risk management in supply chains from a global perspective and provides a structured approach to risk management and mitigation strategies. First, we aim at analyzing the concepts and challenges in global supply chain risk management and to better understand risk identification and assessment methods by determining the various risks inherent in global operations. Second, we focus on moving towards a research agenda which can be used to better understand risk management in cases of major disasters.