Improving the risk matrix for supply chain risk management

What is it about?

This paper examines the effectiveness of the risk matrix tool in supply chain risk management. Many managers making decisions are not mathematically minded and so may struggle with heavily quantitative models. This study compares the risk matrix with Quantitative Risk Analysis (QRA), discussing their advantages and limitations. It argues that many criticisms of the risk matrix stem from poor implementation rather than inherent structural flaws. The paper proposes solutions to improve the risk matrix, making it a more reliable tool for assessing and managing supply chain risks.

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