Supply chain risk management: An idea generator for managing disruption risks in supply chains

This report presents an idea generator which is intended to be used when searching for new options for handling the disruption risks of the company. The initial step of the search is usually characterized as a “brainstorming session”, i.e. to generate as many risk management options as possible, and preferably untraditional ones. This is where the idea generator may be of great assistance; it consists of 22 different risk handling methods and 8 different risk factors. Together this will create 176 unique risk management options. Not all of them are relevant for the specific case, but many are, and several of these options are new and never thought of before.
The modern society of today is, in many respects, a vulnerable society and to a great extent built up round supply chains. In these strictly integrated chains, with a number of often globally dispersed links, there is a constant flow of physical goods, services and also combinations of goods and services. A disruption within any of these flows may very well lead to far-reaching negative consequences.
The private company’s (or organization’s) supply chain and its surrounding environment is exposed to constant changes, which affects its risk picture. It may be difficult to completely avoid being affected by disruptions and disturbances, and perhaps not even desirable, considering the high risk handling costs this probably would require. On the other hand, it is important not to be affected unnecessarily hard, since this of course means a waste of resources. In competitive business activities it is especially important not to suffer worse than the competitors; preferably you should be less affected. Efficient risk management can thus provide a vital competitive advantage.