Supply Chain Risk Management

250 • Supply Chain Risk Management: An Emerging Discipline

QUANTIFIED RISK INDEXES

is approach scores risk events or suppliers using algorithms that model

risk. Risk indexes are quantitative models that consider multiple factors

to arrive at a single risk indicator score, similar to the bridge suciency

rating discussed earlier. ese indexes consider more than simply a sup-

plier’s nancial status when arriving at a risk score. To date most risk

indexes or indicators have been internally developed since third parties

have been slow to respond with new tools and approaches, something that

will likely change.

It is no surprise that risk indexes ...