Contents
Preface vii
1 Working with risk 1
Risk and management 1; Growth of risk management 5; Risk in
the supply chain 7; In summary 11
2 Defining risk 13
Features of risk 13; Decisions and risk 16; Structure of decisions 20;
Decisions with certainty 21; Decisions with uncertainty 22; Decisions
with risk 25; Decisions with ignorance 30; Managing risk 31;
In summary 32
3 Supply chain management 35
Definitions 35; Structure of a supply chain 38; Aims of supply chain
management 41; Activities of logistics 43; Importance of logistics 46;
Risk in the supply chain 49; In summary 51
4 Trends affecting the supply chain 53
Increasing risk 53; Trends in supply chain management 55;
Integration of supply chains 57; Cost reduction 62; Agile logistics 64;
E-business 65; Globalization 68; Outsourcing 71; Changing practices
in logistics 72; In summary 74
5 Approaches to risk management 75
Definition 75; Development of risk management 77; Supply chain
risk management 81; Aims of SCRM 86; Steps in risk management
88; Some principles of SCRM 93; In summary 96
6 Identifying risks 97
Types of risk 97; Identifying risks 105; Tools for analysing past
events 108; Tools to collect opinions 112; Tools to analyse
operations 114; Problems with risk identification 119; In
summary 125
7 Analysing risks 127
Measuring risk 127; Likelihood of a risky event occurring 129;
Consequences when a risk occurs 133; Evaluating consequences
135; Tools for risk analysis 141; In summary 146
8 Responding to risks 149
Responses to risk 149; Alternative responses 151; Defining
options 158; Choosing the best response 167; Implementation and
activation 172; In summary 176
9 A network view of risk 177
Shared risks 177; Achieving an integrated approach 180;
Identifying risks 184; Analysing and responding to risks 185;
Problems with integrating SCRM 187; Levels of SCRM integration
190; In summary 192
10 Creating resilient supply chains 195
Design of a resilient chain 195; Principles of designing a resilient
supply chain 197; Physical features of a resilient supply chain 200;
Relationships within a resilient supply chain 207; Risk
compensation and business continuity 213; In summary 214
11 Business continuity management 215
Emergencies and crises 215; Use of BCM 218; Steps in business
continuity management 224; In summary 231
12 Review 233
Sources of information 239
Index of company examples 247
Index 249