Managing Operational Risk in Supply Chain

Origins of supply chain risk are accidental and complicated. Therefore managing risk has become a critical component of supply chain management. Though different types of framework for supply chain risk management process and methodologies for risk analysis have been proposed, most put focuses on risk´s identification and classification without considering the diversity of supply chain, or on risk evaluation without including expert knowledge for history data is not adapt to risk´s contingency. This research aims to reinforce operational supply chain risk management by proposing an integrated process model combining. The contributions of this paper are two aspects: (1) discussing a method to analyzing risk by decomposing it; (2) playing an important role in the process mode, Bayesian statistics is applied in uncertainty evaluation.