Modeling enterprise risk management in operations and supply chain : a pharmaceutical firm context
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2018
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Abstract
The growing prevalence of disruptive influences in modern operations and supply chains has called for a systematic approach to identify risk sources and to develop predictive enterprise risk management. This imperative has become a top priority for many organizations such as the pharmaceutical industry. This paper leverages a multi-criteria decision making methodology to model enterprise risk management in a focal pharmaceutical firm operations and supply chain. Six types of risks and five strategies are considered and analyzed. Results suggest that supply chain executives attach great importance to regulation/legislation, followed by operational, and reputation risks, while financial, market, and relationship risks ranked low in importance. With respect to enterprise risk management strategies, risk reduction/mitigation was considered the best option followed by risk avoidance option. From the results, it appears that multi-criteria decision making methodology can be used to assist supply chain executives in developing a priority hierarchy for risk management strategies. It can also help the management with a step-by-step approach to identify, assess, and manage portfolio of risks that can be detrimental to their pharmaceutical supply chain performance, brand equity, profit growth, and shareholder value. © Operations and Supply Chain Management. All rights reserved.
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This article is not available at CUD collection. The version of scholarly record of this Article is published in Operations and Supply Chain Management (2018), available online at: http://doi.org/10.31387/oscm0300195
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Keywords
Multi-criteria decision, Pharmaceutical supply chain risk, Risk management strategies
Citation
Enyinda, C. I. (2018). Modeling enterprise risk management in operations and supply chain: A pharmaceutical firm context. Operations and Supply Chain Management, 11(1), 1–12. http://doi.org/10.31387/oscm0300195