Supply Risk Management: Mitigation Strategy

Abstract

The role of risk management is to analyse the measures aimed at protecting firms, specifically the Risk Management techniques.
Company protection is a field in which managerial innovations are urgently required. The need for the supply risk management is the result of social awareness for safety, law-makers desire to regulate dangerous activities and protect individuals exposed to risk, the evolution of technologies which are becoming increasingly complex and dangerous. Malicious and accidental events imply substantial costs that in the most severe cases can even exceed the company’s financial capability. An accurate management of these events and a mitigation strategy can then be a valuable source of saving. low level of propensity to manage and govern mere risks is also due to a specific firm-insurance company relationship characterised by both co-operation and conflicts: nowadays firms do not want “traditional” insurance policies only; they require a range of quality innovative insurance-financial products with consulting services.
Keywords: Supply risk management; mitigation strategy; Insurance.