HO CHI MINH CITY UNIVERSITY OF TRANSPORT FACULTY OF TRANSPORT ECONOMICS HO CHI MINH CITY UNIVERSITY OF TRANSPORT FACULTY OF TRANSPORT ECONOMICS LOGISTICS AND SUPPLY CHAIN RISK MANAGEMENT Edited by Msc[.]
Educational Philosophy – Core Values EDUCATIONAL PHILOSOPHY HO CHI MINH CITY UNIVERSITY OF TRANSPORT KNOWLEDGE SKILLS CREATION HO CHI MINH CITY UNIVERSITY OF TRANSPORT FACULTY OF TRANSPORT ECONOMICS INTEGRATION LOGISTICS AND SUPPLY CHAIN RISK MANAGEMENT Edited by: Msc Chu Thi Hue LEARNING OUTCOMES The learner should be able to: ◦ distinguish what risk means, types of risk ◦ realize the importance of logistics and supply chain risk management ◦ Use the appropriate measures to analyse risk ◦ Choose the proper options to response risk CONTENTS CHAPTER 1: WORKING WITH RISK CHAPTER 2: IDENTIFYING RISKS CHAPTER 3: ANALYSING RISKS CHAPTER 4: RESPONDING TO RISKS Subject assessment: In class: attendant, exercise and case study, team work, discussion, midterm test Final test: multiple – choice questions, true/false, exercise REFERENCES Donald Waters (2011), Supply Chain Risk Management Vulnerability and resilience in logistics, second edition, Kogan Page Limited Lloyd’s practical shipping guides (2007), Risk Management in port operations, logistics and supply chain security, Informa London Rosenberg, Stuart (2018), The global supply chain and risk management, Business Expert Press Khojasteh, Yacob (2018), Supply chain risk management advanced tools, models, and developments, Springer Curkovic, Sime Scannell, Thomas Wagner, Bret (2016), Managing supply chain risk, integrating with risk management, CRC Press GS.TS Đoàn Thị Hồng Vân (2009), Quản trị rủi ro khủng hoảng, NXB Lao động – Xã hội Chapter 1: Working with risk 1.1 Risk and management Everyone knows about risk In general, we think of risk in terms of unpleasant things that might happen ◦ An investment will lose money ◦ A train will be delayed ◦ We will have a car accident ◦ Someone will become ill Chapter 1: Working with risk 1.1 Risk and management For managers, risk is a threat that something might happen to disrupt normal activities or stop things happening as planned ◦ A new product will not sell as well as expected ◦ A project will not be successful ◦ The costs of raw materials will rise ◦ A delivery to customers will be delayed ◦ A supplier will go bankrupt ◦ A warehouse will be destroyed by fire Chapter 1: Working with risk 1.1 Risk and management Risks occur because we never know exactly what will happen in the future We can use the best forecasts and every possible analysis But there is always uncertainty about future events It is this uncertainty that brings risks Eg Dell can schedule its production of computers, and find that a typhoon in Taiwan hits the supply of chips Chapter 1: Working with risk 1.1 Risk and management ❑ Risks come in a huge variety of different forms ❑They can appear at any point in a supply chain from initial (first) suppliers through to final customers ❑They can interrupt the supply of materials on demand for products ❑Their effects can last only a few minutes or cause permanent (lasting/regular) damage ❑Their effects might be localized in one part of a supply chain, or passed on to threaten the whole chain Chapter 1: Working with risk 1.1 Risk and management Case study: Telefon AB LM Ericsson Case study: Nokia Chapter 1: Working with risk 1.2 Need to manage risk The idea of managing risk is not new, as you can see: • when an insurance company charges a premium for taking on a risk • banks charge higher interest rates for more risky loans But in recent years risk management has expanded from its traditional home in finance and it is becoming a broader function that is involved in most decisions “Risk management is not a separate activity from management, it is management” (Handy, 1999) Risk management looks like an additional burden for managers that significantly adds to their workloads However, risk management brings a net benefit that should make an organization more efficient and easier to run ... logistics and supply chain security, Informa London Rosenberg, Stuart (2018), The global supply chain and risk management, Business Expert Press Khojasteh, Yacob (2018), Supply chain risk management. .. what risk means, types of risk ◦ realize the importance of logistics and supply chain risk management ◦ Use the appropriate measures to analyse risk ◦ Choose the proper options to response risk. .. (2011), Supply Chain Risk Management Vulnerability and resilience in logistics, second edition, Kogan Page Limited Lloyd’s practical shipping guides (2007), Risk Management in port operations, logistics