ABSTRACT
Introduction This chapter explains the foundations for a risk assessment and management system and provides an overview of a supply risk assessment approach currently in use by several companies.
The stakeholders for a risk management effort are various and sometimes not readily apparent. The sponsor of the effort is a primary stakeholder and is usually the Chief Procurement Officer or equivalent position such as the Vice President of Supply Chain, Vice President of Procurement, and occasionally the COO (Chief Operating Officer). Other primary stakeholders are the managers within the supply management (or procurement) group and the individual buyers or supply managers. They are usually the ones responsible for turning the results of a risk assessment into mitigation actions. The suppliers themselves are also primary stakeholders in this effort because the assessment involves a review of their company’s attributes, performance, and relationships.
