Skip to main content

Risk matrix driven supply chain risk management: Adapting risk matrix based tools to modelling interdependent risks and risk appetite

Qazi, Abroon, Akhtar, Pervaiz (2020) Risk matrix driven supply chain risk management: Adapting risk matrix based tools to modelling interdependent risks and risk appetite. Computers and Industrial Engineering, 139 . Article Number 105351. ISSN 0360-8352. (doi:10.1016/j.cie.2018.08.002) (KAR id:75440)

Abstract

There is a major research gap of developing a supply chain risk management process integrating the risk appetite of a decision maker and all stages of the risk management process within an interdependent network of systemic risks. We introduce an iterative process, namely risk matrix driven supply chain risk management, to bridge this gap. We make use of the recently introduced concept of utility indifference curves based risk matrix to capture the risk attitude of a decision maker. We also present algorithms for assessing and mitigating interdependent risks for risk-neutral and risk-averse/seeking decision makers and demonstrate the application of our proposed process through a simulation study. Utilising the method of cost-benefit analysis within an interdependent setting of interacting risks and risk mitigation strategies, we also propose a second approach that can help a decision maker to determine a set of Pareto-optimal risk mitigation strategies and select optimal solutions subject to the budget constraint and specific risk appetite.

Item Type: Article
DOI/Identification number: 10.1016/j.cie.2018.08.002
Uncontrolled keywords: Algorithms, Risk appetite, Risk matrix, Supply chain risk management, Systemic risks, Utility indifference curves, Algorithms, Budget control, Cost benefit analysis, Decision making, Iterative methods, Pareto principle, Risk assessment, Supply chain management, Supply chains, Indifference curves, Interdependent networks, Risk management process, Risk matrix, Risk mitigation strategy, Simulation studies, Supply chain risk management, Systemic risks, Risk management
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Pervaiz Akhtar
Date Deposited: 19 Aug 2019 08:53 UTC
Last Modified: 04 Mar 2024 18:41 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/75440 (The current URI for this page, for reference purposes)

University of Kent Author Information

Akhtar, Pervaiz.

Creator's ORCID:
CReDIT Contributor Roles:
  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.