Supply Chain Risk & Returns Management (SCR2M)

Several business trends like outsourcing, globalization, shorter lead times and reliance on supply networks for competitive advantage contribute to create an increasingly risky environment (Zsidisin, 2003). Risk exists at various levels, inside the company and along the external processes (Borghesi and Gaudenzi, 2006). The aim of risk management is the protection of the business from adverse events and their effects. Risk was defined as a chance of danger, damage, loss, injury, or any other undesired consequences (Harland et alii, 2003). Both in the intra-organization perspective and particularly at a network level, risk management aims to protect the capability to achieve the main objectives, and for this reason the commitment amongst supply chain members in managing risks is essential (Jüttner et alii, 2003). Therefore, risk management is becoming a value-added, transversal process which protects the capability of the companies to achieve their objectives (Young and Tippins, 2002).