A Comprehensive Risk Assessment and Evaluation Model: Proposing a Risk Priority Continuum

Supply chain risks continue to affect global operations, with no promise of abating in the foreseeable future. While past studies have examined elements of supply chain risk, many have focused on only the likelihood of a risk occurring and/or the impact of the risk. This research outlines a more rigorous risk assessment and evaluation process, one that builds upon the reliability engineering field and includes an additional risk factor, the probability of risk detection. By using the proposed process, managers can create a risk priority continuum, which can lead to the development of better risk mitigation strategies. Given that not all risks are the same, this article provides a tool for assessing and prioritizing risks to enable managers to achieve desired risk prevention levels as well as to offer faster recovery from risks that actually occur.