The ISO 31000 standard in supply chain risk management

Abstract

Ruptures and interruptions in supply chains (SC) can cause large financial losses and undermine the reputation of firms. In this respect, there is growing interest among researchers in the theme of supply chain risk management (SCRM). SCRM involves analysis carried out in various steps. However, researchers diverge over the number and content of these steps. In light of this problem, the aim of the present study was to analyze whether it is possible to apply the ISO 31000 standard as a systematic procedure for SCRM. And, if so, how the standard can be implemented in the SCRM context, as a framework in a specific company. Through a systematic literature review, we compared and harmonized the risk management steps proposed by researches about SCRM. Additionally we developed a pathway to identify and prioritize which ISO 31000:2009 risk assessment tools and techniques are supposed to integrate a procedure for SCRM, based on the Analytic Hierarchy Process (AHP), exemplified in an automotive supply chain. Based on the research findings, we infer that ISO 31000 can be used beneficially as a standardized method to perform SCRM, as long as tools and techniques are selected according to the company needs and business characteristics.