An Application of ERM to Risk Management in the Logistics

Park, Taeho; Lim, Seungmin; Kim, Jae-Bong

Journal of Navigation and Port Research 2012;36(4):321-327.
Published online May 31, 2012.

A Case

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An Application of ERM to Risk Management in the Logistics

Taeho Park, Seungmin Lim, Jae-Bong Kim

Abstract

Logistics in a supply chain network has become an important operational strategy in a competitive market. A number of internal and external risks involved in the logistics operations in a company tend to create problems in fulfilling customer orders. This research presents how ERM (enterprise risk management) can be used to identify, assess, and control logistics risks. An electronic company’s logistics activities were used as an industry case to demonstrate a way to identify and assess risks surrounding global logistics function. This paper has further presented action plans to mitigate the impact of the risks that occur.

Key Words: Logistics;Supply Chain;ERM Framework;Logistics Risk Management;Risk Processes