Supply Chain Risk Management within the Context of COSO’s Enterprise Risk Management Framework

Abstract

Abstract: Supply chain risk management (SCRM) is an integral part of enterprise risk management (ERM).  This research focuses on the structure, implementation, and maintenance of a formal SCRM system and how such a system may be integrated with ERM.  The ERM framework proposed by The Committee of Sponsoring Organizations (COSO) of the Treadway Commission (COSO, 2004) is used to examine such integration.  Data from 46 firms were analyzed to identify which factors affect the decision to develop an SCRM system and how these factors can influence the level of ERM and SCRM success.  It was found that explicitly linking SCRM with ERM will more readily advance research regarding these important issues and support supply managers in their efforts to develop SCRM strategies, garner the necessary resources, and execute SCRM at their firms.

Key Words: Supply, Supply Chain Risk Management (SCRM), Enterprise Risk Management (ERM), COSO