Supply Chain Risk Catalog

Risk assessment

As presented in Model tab, Risk identification can be effectively implemented with the help of Risk catalog. Risk catalog also represents one of the tools for Risk analysis, as we can use it for identification of general risk properties as well as specific dimensions of defining risks through internal and external context of an organization. Risk identification can be recognized as fully soft solution of Risk assessment, as it is implemented with soft grips - evidence based methods, systematic team approaches, inductive reasoning techniques (HAZOP), brainstorming, Delphi methodology etc. Risk analysis, on the other side, can be recognized as a semi-soft solution, as it can be implemented by qualitative, semi-quantitative or quantitative methods - descriptive levels of risks and numerical rating scales for consequence and probability, or the combination of both. The purpose of Risk evaluation is to determine the importance of the degree and nature of risks and the determination of the necessary measures. When evaluating the risk we should primarily decide which risks need treatment and what are the priorities for implementation of this treatment.

Risk treatment

Consideration of the risks includes selecting one or more appropriate options to change the likelihood of risk, the affect of risk, or both, and to implement those options. This is followed by a cyclic process of re-evaluating risks to re-determine the type of treatment. Risk treatment, which deals with the negative consequences, might also be implemented as “risk mitigation”, “risk elimination” and “risk prevention”. Thus the treatment or modification of risks can be implemented by the removal of a source of threat, by reducing the likelihood of an adverse event, by changing its consequences, by risk sharing with other contractors, by cessation of activities, or by maintaining the risk with smart decisions. Residual risk is the risk that remains even after Risk treatment.

Case study

On the reverse IRP of collecting hazardous recyclables hazardous_materials_in_transport.pdf


Log In