Supply Chain Risk Management (SCRM) is a section of Supply Chain Management that aims to evaluate both everyday risks (such as delays or delivery bottlenecks) and exceptional risks (such as environmental disasters or pandemics) along the supply chain and to develop action plans. The aim of a well-founded SCRM is to minimize the susceptibility to disruptions and to ensure low-friction supply chain processes.
The SCRM is divided into four phases:
1. Identification phase:
Identification of possible causes of disruptions: Exogenous and endogenous factors.
2. Evaluation phase:
Assessment of the probability of occurrence and the extent of possible damage.
3. Control phase
Containment of risks and minimization of the effects in the event of damage, through action plans and defined processes.
Risk monitoring, for a fast and well-founded reaction to any risks that may arise.« Back to Glossary Index