A quantitative and qualitative approach to manage risks in the supply chain operations reference

Businesses that do not take risks do not make money. As businesses continually evolve, so do risks. Risk management becomes a crucial part of every successful business model to deal with uncertain and risky socio-economic changes. The emergence of supply chains which coordinate organizations, people, activities, information and resources dramatically increases risk crises. Efforts have resulted in process reference models, such as the supply chain operations reference (SCOR), which measures total supply chain performance. Although the SCOR model is designed and maintained to support supply chains of various complexities across multiple industries, the current version does not provide a basis for the risk management of projects and decision making workload. This paper attempts to propose an approach to bridge the gap between the SCOR model and risk management. Its underlying approach focuses on the types of threats in SCOR implementation projects and applies empirical benchmarks to measure risks in process elements.