To Manage Or Not To Manage Risk Assessment
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2021
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Abstract
The current Coronavirus pandemic conditions and its effect on the supply chain is an issue that is being viewed from the context of crisis management, instead of, as an issue that should be viewed through risk management. While both are similar and often interchangeable it must be recognized that while the supply chain is currently undergoing a crisis, had risk assessment been properly managed, the supply chain disruptions would have been avoided in the first place. Better management of the supply chain would be achieved through striking that balance between cost efficiency and reliability. Some manufacturers in the automobile industry, with their 'Just In Time' processes, have been particularly adversely affected by the current disruptions to the supply chain. The complex logistics behind the supply chain is a factor that is covered by risk management protocols, yet, it can be argued that these manufacturers have disregarded these protocols in pursuit of lowering costs in the name of efficiency. Herein, we note the case of two manufacturers, General Motors of the United States and the Indian owned but British based Jaguar Land Rover Group, to see examples of how the industry can choose different paths, either to fully manage and follow risk assessment protocols, or choose to emphasize operational efficiency above all else and take the calculated risk in minimizing or disregarding those risk protocols