Managing Supply Chain Risks

This chapter takes an exploratory look at the use of formal network measures to further understanding of the sources of extended enterprise or supply chain risk. It attempts to show that network measures can provide additional insight to ‘uncover’ sources of risk that could remain hidden using ‘traditional’ measures alone. More specifically, network measures of criticality, centrality, redundancy, distance and topology are combined with traditional measures of criticality, organisational slack, global sourcing and outsourcing to develop a more complete understanding on the determinants of the impact and/or probability of supply chain disruption. The measures identified provide researchers and managers with a wide-ranging framework for risk identification.