Towards a New Model of Supply Chain Risk Management: the Cross-Functional Process Mapping Approach

Supply chains bring companies economies of scale; at the same time, they also carry some risks. Recently risk management has become one of the principles of supply chain management. As discussed by other authors, they attribute process management to both Supply Chain Management (SCM) and risk management. Based on this proposition, this research mainly applies one of process mapping tool, Cross-Functional Process Mapping (CFPM), to constructs a new theoretical model of risk management in supply chain. The procedure of this model, which is a eight-step continuous process cycle from team organising to reporting, aims at not only reducing loss during risk occurrence but also redesigning and improving the whole business process to resist the risk loss.