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What is Supply Chain Risk Management? A Review

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 RESEARCH ARTICLE
Copyright © 2017 American Scientific Publishers Advanced Science Letters
All rights reserved
Printed in the United States of America
Vol. 23, 9233–9238, 2017

What is Supply Chain Risk Management? A Review

Muhammad Saeed Shahbaz∗ , Raja Zuraidah RM Rasi, Md Fauzi Bin Ahmad, and Fazalur Rehman
Faculty of Technology Management and Business, University Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia

The prime objective of Supply chain risk management (SCRM) is to reduce the chances of any uncertain
situation and feat an appropriate set of solution to manage the situation efficiently and effectively. SCRM is full
of challenges that can result in higher cost, wasted materials and production error. It has become even more
complex and vulnerable than in past. Due to absence of commonly recognized definition of SCRM and very
scared literature, it is very difficult to clearly understand it. This study has worked on two objectives. First, this
study has tried to understand the nature of SCRM by elaborating relevant literature with a novel methodology
and to verdict its accurate explanation. Second, compile the diverse and scattered literature so for potential
researchers it will be easy to approach it. A comprehensive review shows that study on SCRM is still not only
very limited but also much dispersed. This article will elaborate a general literature review on evaluation of
definitions of supply chain, risk management and supply chain risk management. This article applies content
analysis approach, bibliographic analysis and analyzing top cited journal and researches in SCRM that is a
unique and novel methodology. The finding of this study reveals that, majority of the researchers are agreed,
risk is variation in outcome or performances that are not predictable, whereas supply chain is a network of
organizations that add value in every stage of product or services till its destination toward users. Supply chain
risk is probabilistic and unwanted situation whereas
IP: 5.8.37.51 On: Thu, supply chain2018
09 Aug risk management
16:46:35 is to manage probabilistic
and undesirable situation by evaluating risk sources, analyzing likelihood
Copyright: American Scientific Publishers and present a strategy to avoid, mitigate
or minimize the effect of risk sources. Delivered by Ingenta
Keywords: Risk Management, Supply Chain, Supply Chain Risk Management.

1. INTRODUCTION observed. Subsequently, supply chain has become as essential part

Risk is part of life. Someone may be late from his work or one of global business and economies. Due to globalization and rapid
may need to cancel his meeting, internet can stop working when change in innovation increase the value of supply chain.7 Now it
you really need it or there may be strike in Sunday when some- has been said that supply chain is a complex network it includes
one has the only day for shopping. Risk or disruption of risk procurement, internal operations, inventory, marketing etc.8 but
can be anytime, anywhere and to anyone but it does not mean due to its simplicity and commonness the world supply chain will
to halt, life has to move on. Meanwhile if someone has notewor- prevail.9 Supply chain risk management is a new area but has
thy planning or contingencies the loss can be avoided, mitigated gained histrionic importance. This study will present a detail dis-
or minimized.1 Risk is reality; it is almost impossible to abso- cussion on definition in literature section. Several views describe
lutely escape from this. Every single field has to face it either various definition of risk but some words or ideas are common by
in daily life or in business.Any disruption either natural or non- taking these mutual ideas a universal definition can be developed.
natural have become highest risk for business.2–4 In an interview The coming segment will present the justification for the study
about 67% managers agree that risk management is more impor- than literature review of supply chain risk management. Firstly,
tant than before.2 Huge literature is available on the definition of in literature review, the definition of risk management then there
SCRM and its development but still a common understanding is is discussion of supply chain. Toward the end is cluster of both
missing.5 Global, economic, social and political advances in sup- and development of supply chain risk management. Discussion
ply chain has increased the risks and by involving more partners and conclusion are at the end before the future direction.
it has become more complex.6
Risk or risk management is diverse, complex and scattered area,
it can be found in many subjects like engineering, medical, elec- 2. JUSTIFICATION FOR STUDY
trical, mechanical etc. because of its diversity and complexity it Supply chain and supply chain risk have gained the interest
has numerous definitions. In the justification section it can be of many researchers and practitioners.10 Although supply chain
risk management has gained popularity but still attempts to syn-
∗
Author to whom correspondence should be addressed. thesize research within this turf have rarely been conducted.11

Adv. Sci. Lett. Vol. 23, No. 9, 2017 1936-6612/2017/23/9233/006 doi:10.1166/asl.2017.10061 9233
RESEARCH ARTICLE Adv. Sci. Lett. 23, 9233–9238, 2017

Aiming according to Ref. [12] there is still no clear definition seventeenth century and is belonged to the French mathemati-
that describe SCRM completely. Whereas,13 stated that the back- cians “Blaise Pascal and Pierre de Fermat,” who apply some
ground of the word risk is still not clear. The gap for this study techniques of mathematics to gambling.29 Although risk was
also become validated when5 detailed that even though this area associated to gambling for many years, from early nineteenth
has attracted many researcher’s attention still it does not have a century, insurance industry used the term risk in England.30
clear definition. One of the most important study revealed that Risk is unwanted negative consequences arise from different
being a relatively new area, SCRM is being assumed as con- events or activities Rowe.31 While, according to Ref. [32] risk
fused and order less field.14 The study is also justified when15 is the probability and severity of negative effects. By stretch-
stated that due to absence of commonly recognized definition ing this concept,30 explained two basic components of risk. First,
of SCM, it is very difficult to clearly understand it. Some other risk is future outcome. Second is the probability of that partic-
studies also add values like A comprehensive review from 1995 ular outcome. Reference [33] stated the risk as “a combination
to 2009 shows that study on SCRM is still limited16 and It has of the probability, of occurrence, or frequency, of a defined haz-
been expressed that there is no universal definition of SCRM.11 ard and the magnitude of the consequences of the occurrence.”
Therefore, this study has noted a gap of knowledge to understand Hence,34 supposed risk in terms of “the likelihood of an uncer-
the fundamental conception of SCRM. After detail discussion it tain event or set of circumstances occurring which would have
seems essential before going to the depth of study that the fun- an adverse effect on the achievement of a project’s objectives.”
damental concept or basics of SCRM should be clear. Additionally,35 explain risk as “the probability of loss and the sig-
nificance of that loss to the organization or individual.” The study
of Ref. [36] revealed that in managers perspective, risk is possibil-
3. LITERATURE REVIEW ity of losses.37 Stated in his book that risk came from Italian word
A single disruption can halt whole flow of supply chain like Arab risicare that means to dare. On the other view that it came from
Spring, the Sendai earthquake and the flood in Thailand in 2011 Arabic word risq that means gift from God. Some researchers dis-
have exposed that how disruptions in anywhere can affect the sup- tinguished risk between subjective and objective and conclude that
17
ply chain even in developed countries. According to Ref. [18]
it is subjectively determined expectation of loss, where higher the
supply chain risks are interconnected, any problem can disrupt
risk, higher the probability of loss.38 According to Ref. [39] risk
whole. It can be observed from Tsunami and earthquake in Japan
is loss or negative result came from operations.Oxford English
when a single disruption disturbed many elements of global sup-
dictionary 2005 describes risk as “a situation involving exposure
ply chain and harmed many businesses in other countries, overall
to danger” and business dictionary explain it as “A probability
economic loss was 210 billion dollar.19 Malaysia has face many
or threat of damage, injury, liability, loss, or any other negative
supply chain issue that not only effect organizations but also over-
IP: 5.8.37.51 On: Thu, 09occurrence
Aug 2018 that is caused by external or internal vulnerabilities,
16:46:35
all economy like in 2008 airport closer in Thailand, hard-disks
Copyright: American and that may
Scientific be avoided through preemptive action.” Meanwhile
Publishers
and other electronic now sent to Malaysian and Singapore air-
Delivered
ports by trucks, as a result long lead time and transportation cost by Ingenta
risk can be defined in three elements: “the extent of loss (elements
3 of loss), its importance (significance of loss) and its probability
occurred. Maritime piracy in State of Malacca, currency fluctu-
20
ating, import/export regulations Straits. Delays in physical dis- of appearance (associated uncertainty of loss).”40
tribution in electronic and electric industry,21 rapid technological Meanwhile, some researchers evaluate risk according to classic
22
changes, increase outsourcing, product variation and suppliers decision theory; by define that risk is variation in expected pos-
23
defaults, oil prices, china economic slowdown and foreign cap- sible outcome, its likelihood and its subjective values, Variance
ital outflow,24 natural hazards like Loss of Malaysia Airlines 370, method has been used to conceptualize the risk. Additionally,
crash of Flight 8501 of AirAsia, devastation of Malaysia Airline it has been expressed that risk is variation in outcome or per-
25
over Ukraine and floods and lastly Malaysian palm oil com- formances that is not predictable.41 42 While43 express that risk
pany IOI, World’s largest palm oil producers and traders, has is “unanticipated negative variation” and according to Ref. [44]
been blocked for their operations by Greenpeace because of forest risk is defined as chances of variation in the expected results. It
demolition and child labor.26 can be conceptualized, from most of the researchers, that risk is
Risk management is not a new thought, it can be found in probabilistic and undesirable situation.
far past.27 In many religions there is a common famous inci-
dent that expresses risk and its mitigation strategies. The king of 3.2. Supply Chain
Egypt (Pharaoh) had a dream that seven healthy cattle were eat- The impartial of supply chain management (SCM) is to crag the
ing seven weak cattle. The king was confused he called Joseph organization’s goal either form goods or services. Supply chain
(The Youssef R.A according to Quran) and inquired version of risks can the cause sharp downturn in the share prices of the
that dream. The interpretation given by Joseph was, seven year organizations, which can be slow to recover, but it can be rea-
of affluence followed by seven year of scarcity. The mitigation son to conflict amongst the stakeholders of the organizations.45
strategy that Joseph suggested and adopted was to save extra Reference [46] stated that there is strong bond between risk and
crops for bad time. It was fantastic approach that saved Egypt supply chain, both cannot be understood and managed solely.
from paucity and gave Joseph fame and power.13 Coming seg- Some previous incidents also add the value in supply chain risk
ment will present the detail of risk management, supply chain management, such as 9/11 attacks in U.S., war in Iraq, diseases
and supply chain risk management. and natural disasters, such as hurricane Katrina which devastated
New Orleans, all have disrupted, or caused for uncertainty in sup-
3.1. Evaluation of Risk ply chain.47 According to Ref. [48] supply chain management is
In the field of Management, the first and inspiring work about “a systematic, integrated management philosophy, its core mean-
risk was by Refs. [13, 28]. The study on risk starts from ing is to enable companies to fully understand the customer

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Adv. Sci. Lett. 23, 9233–9238, 2017 RESEARCH ARTICLE

Table I. Definitions of supply chain risk with their respective references.

No. References Definitions

1 [62] “The transpiration of significant and/or disappointing failures with inbound goods and services.”
2 [47] Probability of disruption in any part of supply chain caused by internal or external sources that can impact
objective of network negatively.
3 [63] SCR is probability of an event in supply chain due to supplier failure or any market issue that result of inability to
meet customer satisfaction.
4 [64] This study has described SCRM as formal process and explain that it include identification of potential damages,
understand their chance of accordance and suggest a proper strategy to manage it.
5 [65] SCRM’s aim is to apply tools, in collaboration with their fellows that deal with logistic related risks.
6 [66] “Combination of probability or frequency of occurrence of a defined hazard and magnitude of the occurrence.”
7 [67] According to this article supply chain risk management is a process to mitigate the risks through coordination,
collaboration, and application of SCRM techniques to ensure the long term continuity and profitability ofall
partners.
8 [68] Variation in possible outcome in supply chain, its chance of occurrence and level of effect.
9 [68] The book “Supply Chain Risk Management Minimizing Disruptions in Global Sourcing” describes the definition of
SCRM in the perspectives of customer, supplier, and company. According to it SCR is identification of disruption
in operation or production that also affect the other parts of supply chain.
10 [69] “SCRM is defined as the identification and management of risks within the supply network and externally through a
coordinated approach amongst supply chain members to reduce supply chain vulnerability as a whole.”
11 [70] The capability of the organization to realize and manage its environmental, economic and social risks.
12 [27] “Global SCRM is the identification and evaluation of risks and consequent losses in the global supply chain, and
implementation of appropriate strategies through a coordinated approach among supply chain members with the
objective of reducing one or more of the following—losses, probability, speed of event, speed of losses, the time
for detection of the events, frequency, or exposure—for supply chain outcomes that in turn lead to close
matching of actual cost savings and profitability with those desired”
13 [71] The difference in the dissemination of potential SC outcome, its possibility, and its individual values.
14 [72] The potential variation from the primary objective, the ultimately decrease the values at different stages of supply
chain.
15 [73] The unexpected result from different operations of supply chain.
16 [74] “SCRM process is a tool to provide management with useful and strategic information concerning the SC risk
profiles associated with a given situation. This is in contrast to the traditional approach based on single point
estimates.”
17 [75] “SCRM refers to risks that can modify or prevent part of the movement and efficient flow of information, materials
and products between the actors of a supply chain within an organization, or among actors in a global supply
IP:(from
chain 5.8.37.51 On:supplier
the supplier’s Thu,to09 theAug 2018customer).
customer’s 16:46:35 SCRM can be seen as the capacity to be agile.”
18 [76] “SCRM is Copyright:
the systematicAmerican
identification,Scientific Publishers
assessment and mitigation of potential disruptions in logistics networks with
Delivered
the objective to reduce byimpact
their negative Ingenta
on the logistics network’s performance.”
19 [20] It is the management of organizations and their activities by the way of cooperative relationship, risk management,
information sharing, effective and efficient processes to achieve targeted performance with sustainability and
competitive advantages.
20 [22] SCRM explores supply chain issues and offers models for analysis of risks that can disrupt any of the demand or
supply sides.

and market demand, to keep pace, resource sharing and integra- activities, network, philosophy and system.52 53 According to
tion, coordinated support all enterprise collaborative supply chain Ref. [51] SCM is a network of facilities and distribution and
operations and improve the overall competitiveness of the sup- its main functions are procurement, transfer and distribution till
ply chain, enhance the sensitivity to market risk and effectively the end users.54 Revealed that SCM is network of organiza-
meet customer needs of functional systems, build quality brand tions to facilitate in procurement, convert raw material to finished
resources, and ultimately achieve long-term sustainable devel- product and distribution them to customers. Accordingly,55 also
opment of enterprises.” Lastly, now supply chain has become a use the world supply network instead of supply chain in their
strategic industry from supportive industry.49 study. Meanwhile,56 described SCM as “a set of approaches uti-
Previous logistic focused only on procurement, maintenance, lized to efficiently integrate suppliers, manufacturers, warehouses
inventory and distribution. Supply chain adds values like and stores, so that merchandise is produced and distributed at
new product development, marketing, customer services and the right quantities, to the right locations, and at the right time,
finance.50 Has explore the development in logistic in every in order to minimize system-wide costs while satisfying ser-
decade from 1960 to 2000 and conclude that it has become vice level requirements.” Furthermore, in a comprehensive liter-
supply chain from logistic many years ago but after 2000 it ature review of Ref. [15] it is revealed that SCM is management
gain tremendous growth. Now supply chain has its own objec- which include material, finance, information and personnel, the
tives like customer satisfaction and sustainable organizational main aim of all is to attain customer satisfaction and competitive
performance.21 Reference [15] stated that due to absence of com- advantages.
monly recognized definition, it is very difficult to clearly under- In the definition of SCM the world flow is usual, most of
stand it. According to Ref. [42] the world supply chain did the researchers use three fold flow to describe the SCM, flow
not exist before 1980 and its first name was strategic logistic of information, flow of material and flow of finance.57 58 Subse-
management.21 Quoted that first research on SCM is by Ref. [51]. quently, research of Ref. [20] relate SCM as a system that consist
In the past, SCM has been defined in many worlds like process, of people, information, organizations, activities, and resources

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RESEARCH ARTICLE Adv. Sci. Lett. 23, 9233–9238, 2017

which are being used to transfer goods or services from supplier Table II. Journals with number of retrieved articles.
to end users with the help of some structured systems like pur- No Journal References T. No.
chasing, manufacturing, transportation, warehousing, planning,
1 The international journal of [5, 6, 8, 9, 13] 6
customer services etc. Consequently after the above discussion,
logistics management
it can be concluded that supply chain is not a simple chain, most 2 International journal of physical [44, 64, 65, 70] 4
of the researchers replace the word chain into network because distribution and logistics
of its complexity.59 60 Accordingly, the older term supply chain management
3 Conferences [21, 51, 79] 3
will prevail because of its commonness and simplicity.20 4 International journal of production [14, 16] 2
economics
3.3. Supply Chain Risk 5 Journal of business logistics [27, 58] 2
6 International journal of operations [52, 80] 2
Identification, categorization and mitigation are essential for the and production management
success of any supply chain. Supply Chain Risk Management has 7 International journal of logistics: [41, 47] 2
become a widespread subject over the last decade.61 It is only Research and applications
8 International journal of production [72, 73] 2
possible when risks are well identified.11 23 It has been explained
11 research
that there is no universal definition of SCRM. Below are table 9 IEEE [68, 77] 2
of some definitions, how several researchers in multiple time
periods define SCR and SCRM. This study will examine and will
try to come on some mutual understandings. So, it is assumed Table III. Publishers with number of retrieved articles.
that this study will support in understanding the common con-
No. Publisher References T. No.
ception about the under searching phenomenon.
From the above stated definitions, it is clear that SCRM is 1 Emerald insight [5, 6, 8, 9, 13, 38, 44, 51, 14
52, 64, 65, 67, 70, 80]
vast in its objectives and have become more complex.77 The
2 Taylor and francis group [41, 47, 71–73] 5
most famous and citied research stated SCR as probability of 3 Others [15, 21, 51, 79, 82] 5
disruption either from internal sources or external sources that 4 Elsevier [14, 16, 39, 78] 4
can harm supply chain.47 78 Moreover, in the definitions of SCR 5 Wiley online library [27, 58] 2
multiple aims and directions have been discussed. For example,
some describe is as a process of identification of risk while oth-
ers describe SCRM as a tool to manage risks.65 Reference [20] UtaJüttner, Stephan M. Wagner, Christoph Bode, Ila Manuj etc.
relate SCRM as management on the other hand22 described the have been considered too. All retrieved material has been study
functions, to explore risk issues and presentIP: 5.8.37.51
a model forOn: Thu, 09thoroughly.
analysis Aug 2018Bibliography
16:46:35 analysis has also been conducted. At
Copyright:ofAmerican
of disruption. SCRM main objectives are assessment potential Scientific
the end, 62 Publishers
articles were found that discuss completely or par-
risks and develop an appropriate plane to avoid or mitigateDelivered
it.22 bytially
Ingenta
about risk management, supply chain and supply chain risk
By combining the section of risk management, it can be con- management. All selected articles are being discussed in litera-
cluded that SCR is also a situation that is not anticipated and it ture. The distributions of the articles are mention below.
can be affected or effect to supply chain operations. In the mean- The aim of Table II is to describe the diversity of the area;
time, SCRM is management of supply chain risks. So, SCRM analysis shows that by changing methodology multiple views can
can be defined as management of risk sources and present a solu- be included. Among 62 articles major portion (37 articles) has
tion for avoid, mitigate or minimization its disruption. By relating been retrieved from 16 different journals, whereas, the distribu-
with risk management and supply chain, SCRM may be assumed tion of remaining 25 articles has mention above.
as to manage probabilistic and unwanted situation by identifying
risk sources, analyzing likelihood of these risks and present a 4.1. Distribution of Retrieved Articles
viable solution to avoid, and mitigate or minimize the effects of According to Publishers
these sources. The objective of this table is to describe the diversity of the
area, analysis shows by changing methodology multi views can
be observed. Among 62 articles big portion is from Emerald
4. METHODOLOGY Insight and reaming distributed among 15 different publishers,
This is an unsystematic literature review. It has been revealed that 11 journals have only one representation.
supply chain is in the stage of infant.10 According to Ref. [79],
the concepts of SCRM are relatively scattered and nobody till
now try to merged them before. Several databases were searched Table IV. Researchers with highest number of citations in field of
with different keywords like supply chain risk management, eval- SCRM.
uation of risk in supply chain, risk in supply chain etc. but result Number of Total number of Citations
was much scattered. The SCRM has been utilized in multi-fields Author publication citations after 2011
like electrical and electronic, mechanical, medical etc. It has been Martin Christopher 279 30403 16064
open that there is no universal definition of SCRM.11 It reveals George A. Zsidisin 81 5109 3209
the importance of unsystematic review. Meanwhile, some arti- UtaJuttnerJüttner 44 3658 2282
Terry P. Harrison 100 3539 1655
cle have been taken on the basis of high level of citations Jennifer V. Blackhurst 52 2758 2136
13 80
like, and few thesis that are related to evaluation of supply DevinderBanwet 105 2609 2035
3 81
chain risk management like, etc. Furthermore, most signif-
Source: Google scholar on 26–11–2016.
icant researchers like George A. Zsidisin, Martin Christopher,

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Adv. Sci. Lett. 23, 9233–9238, 2017 RESEARCH ARTICLE

Table V. Articles with highest number of citation in SCRM. a complicated network that not only deal with flow of goods,
Articles Total number of citations
finance and information, it also include inventory management,
customer satisfaction, planning and etc. Supply chain risk man-
Supply chain risk management: outlining an 937
agement is newborn area in business. Most of the review papers
agenda for future research
Ericsson’s proactive supply chain risk 736 revealed that there is still need to more explore it. According to
management approach after a serious some academics, SCRM is a management approach to deal with
sub-supplier accident unexpected risks, some claim that it is process to identify, ana-
Supply chain risk management: 624
lyze and mitigate risks related to supply chain. Consequently, few
Understanding the business requirements
from a practitioner perspective things are common among definitions like firstly, risk is unex-
Global supply chain risk management 602 pected secondly, it has a chance of assurance thirdly, it severity
strategies of impact on performance and lastly requirement of solutions to
A grounded definition of supply risk 420 manage consequences.
Identifying risk issues and research 362
advancements in supply chain risk
management
Supply chain risks: A review and typology 306 6. CONCLUSION
This study is a general evaluation of literature review with unique
Source: Google Scholar on 26–11–2016.
methodology that aim was to evaluate the diverse concepts of
SCRM. Almost every review article exposed that there is a lack
4.2. Significant Researchers of understanding of supply chain risk. This study has tried to
The Researchers, whose work has highest number of citations in contribute in this gap by selected articles based on high cita-
supply chain risk management, are mentions below. Keywords tions, analyzing significant researches and journals and by bib-
for search were highest cited researchers in supply chain, supply liographic analysis. Total 62 articles have been retrieved on risk
chain risk, evaluation of supply chain risk, etc. Selection of management, supply chain and supply chain risk management.
related articles and bibliographic analysis had been done upon Findings of the study reveals that risk is a probabilistic and unde-
retrieved articles. sirable situation, whereas supply chain is not a simply chain but
a complicated network. Concluding all, SCRM is management
4.3. Example of Top Citied Articles of probabilistic and undesirable situation in supply chain context.
The aim of SCRM is to identify risk sources, analyze them and
Below are some articles that have highest level of citations. Arti-
cles has been searched on “Google scholar” with keywords like present an approach to avoid, mitigate or minimization form dis-
IP: 5.8.37.51 On: Thu,
highest citation articles in supply chain, supply chain risk, eval- ruptions.
09 Aug 2018Additionally,
16:46:35 this article compile multiple views, so for
Copyright: American
uation of supply chain risk etc. and pick related articles that also Scientific
future Publishers
research it is easy to get the knowledge about risk, supply
have highest citation for reference in this work and for Delivered
biblio- bychain,
Ingenta
supply chain risk management and their related journals,
graphic analysis. publishers and academician in these fields.

Future Directions
5. DISCUSSION This study has a limited literature, next study may be on more
The aim of this study wasto evaluate the multiple concepts of than 62 articles, secondly methodology is somewhat bias by
supply chain risk management, secondly bring their disperse unsystematic literature further study can be unbiased by taking
views and fundamental concepts on unanimity, it has been tried systematic review or large sample. Another issue is risk is derived
to come on an agreed conception by taking some common ideas from multi sources and these sources reflect in the definitions.
from previous work. Risk management is very broad concept and This study did not consider these sources. Further study may
have many directions, it can be found in physics, chemistry, biol- include these situation or sources for better understanding.
ogy, marketing, operation and etc. It prevails in every aspect of
life. As mention above, most of researchers take it as manage- Acknowledgment: “This paper was partly sponsored by the
ment of unwanted situation. Some explained it as probability of Centre of Graduate Studies, UniversitiTun Hussein Onn Malaysia
loss. It is also considered as hurdle in achievement of goals. In a (UTHM).”
nutshell, risk is a situation that is not required and its manage-
ment means how to avoid, mitigate or minimize from its effects.
Supply chain has become a crucial segment of all business or References and Notes
organizations. It is open in the above related section that orga- 1. H. Zandhessami and A. Savoji, Int. J. Econ. Manag. Sci. 1, 60 (2011).
2. HarvardBusinessReview, Risk Management in a Time of Global Uncertainty
nizations can’t achieve its goals without proper management of (2011).
their supply chain. It is evident too that disruption in supply 3. K. Kungwalsong, Managing Disruption Risks in Global Supply Chains, The
chain can disturb whole system, as mention above the examples Pennsylvania State University (2013).
of world disasters that how Tsunami or mega tragedies disrupt 4. World Economic Forum, Global Risks 2010: A Global Risk Network Report
(2010).
not only business but also economies of the many countries. 5. S. Y. Ponomarov and M. C. Holcomb, Int. J. Logist. Manag. 20, 124 (2009).
Most of the researchers are agree that there is no common 6. O. Khan and B. Burnes, Int. J. Logist. Manag. 18, 197 (2007).
definition of SCM. Some take it as a subject, few consider is as 7. M. Kamalahmadi and M. M. Parast, Int. J. Prod. Econ. 171, 116 (2016).
8. M. C. Cooper, D. M. Lambert, and J. D. Pagh, Int. J. Logist. Manag. 8, 1
phenomena and it is also called a system. Meanwhile, academics
(1999).
also consider it as a network. It is revealed from literature that 9. U. Jüttner, Int. J. Logist. Manag. 16, 120 (2005).
most of the scholars are agree that it is not a simply chain but 10. M. Zubair and N. A. Mufti, J. Basic Appl. Sci. 11, 167 (2015).

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11. P. S. Ceryno, L. F. Scavarda, K. Klingebiel, and G. Yüzgülec, Int. J. Ind. Eng. 50. R. Ali, H. S. Jaafar, and S. Mohamad, Logistics and supply chain in Malaysia:
Manag. 4, 141 (2013). Issues and challenges, Int. Symp. Sustain. Transp. Inc. Malaysian Univ.
12. I. Manuj and J. T. Mentzer, Int. J. Phys. Distrib. Logist. Manag. 38, 192 (2008). Transp. Res. Forum Conf., August (2008), pp. 1–11.
13. S. Rao and T. J. Goldsby, Supply Chain Risks: A Review and Typology 20 51. R. Ganeshan and T. P. Harrison, Depatment Manag. Sci. Inf. Syst. Penn State
(2009). Univ. 1 (1995).
14. P. Trkman and K. McCormack, Int. J. Prod. Econ. 119, 247 (2009). 52. K. Burgess, P. J. Singh, and R. Koroglu, Int. J. Oper. Prod. Manag. 26, 703
15. R. K. Shukla, D. Garg, and A. Agarwal, Int. J. Eng. Sci. Technol. 3, 2059 (2006).
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Received: 4 December 2016. Accepted: 10 June 2017.

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