Supply chain risks: a review and typology

Abstract

Abstract Purpose – The purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain. Design/methodology/approach – The paper draws its insights and conclusions from a review of the literature on supply chain risk, and a synthesis of the broader domain of risk management. Findings – While the literature on SCRM is growing, the literature lacks an organized structure for the sources of supply chain risk. The current paper bridges this gap by synthesizing the diverse literature into a typology of risk sources, consisting of environmental factors, industry factors, organizational factors, problem‐specific factors, and decision‐maker related factors. Practical implications – The paper devises a typology that can be used by managers to measure and assess the vulnerabilities of their company and supply chain. The typology also provides avenues for future research that further guides practitioners in the management of their supply chain risk portfolio. Originality/value – SCRM is rapidly developing into a favored research area for academicians as well as practitioners, especially after the attacks of September 11 and the recent array of natural disasters. This paper develops a methodology for structuring academic inquiry in this important research area.