Risk management processes in supplier networks

This paper deals with risk management in supplier networks. The primary aim is to illustrate challenges that network co-operation brings to risk management. The paper outlines the general structure of the risk management process and presents methods for risk management in a complex network environment. The results indicate that risk management is an important development target in the studied supplier networks. When the dependency between companies increases, they become more exposed to the risks of other companies. The presented processes facilitate understanding and managing of uncertainties and risks in supplier networks. Empirical evidence is offered on the basis of case studies. (C) 2004 Elsevier B.V. All rights reserved.