Abstract
Risk treatment is an important stage of the risk management process involving selection of appropriate strategies for mitigating critical risks. Limited studies have considered evaluating such strategies within a setting of interdependent supply chain risks and risk mitigation strategies. However, the selection of strategies has not been explored from the perspective of manageability- the ease of implementing and managing a strategy. We introduce a new method of prioritising strategies on the basis of associated cost, effectiveness and manageability within a theoretically grounded framework of Bayesian Belief Networks and demonstrate its application through a simulation study. The proposed approach can help managers select an optimal combination of strategies taking into account the effort involved in implementing and managing such strategies. The results clearly reveal importance of considering manageability in addition to the cost effectiveness within a decision problem of ranking supply chain risk mitigation strategies.
| Original language | English |
|---|---|
| Title of host publication | Supply Chain Risk Management |
| Subtitle of host publication | Advanced Tools, Models, and Developments |
| Publisher | Springer |
| Publication status | Accepted/In press - 11 Jul 2016 |
Keywords
- risk treatment
- risk management
- risk mitigation strategies
- Bayesian Belief Networks
- supply chain risks