Managing Supply Chain Risks and Risk Mitigation Strategies

Abstract

Effective risk management in the supply chain of a company is a core business competency. In this case study, a major company in the Kaesong Industrial Complex in North Korea is used to evaluate strategic planning in supply chain risk management. In this company, four supply chain risks (financial, operational, human resources, and information) are identified and prioritized in terms of four strategies (cost, quality, delivery, and flexibility) using the analytic hierarchy process. The results are analyzed to provide supply chain risk mitigation strategies and their implications for the company. This study reinforces the importance of strategic planning for supply chain risk management in providing competitive advantage and future survival.