Managing Supply Chain Risk

SCRM within the Context of COSO’s ERM Framework • 63

make roles unclear, so responsibilities need to be dened. In general,

the companies in this study have not adopted such boundary- spanning

processes for risk management. Instead, they have managed risks within

functional silos.

In the absence of cross- functional processes and the lack of risk man-

agement applications, the supply chain managers in this study are build-

ing risk considerations into existing traditional SCM applications (e.g.,

spend, contract and inventory management, demand planning, bench-

marking, etc.). is study suggests that supply chain managers generally

run and coordinate the work to maintain an optimal balance between risk

exposures and costs for damages versus pr