Supplier management - Dealing with risky business. A single case study of ERM and SCRM interaction in a multinational company context.

University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

Abstract: Enterprise Risk Management (ERM) has emerged as an important area of management control in recent decades.Extending on previous research which has focused on how ERM is implemented within companies, this thesis investigates how ERM practices interact with risk assessment and management of supplier relationships. Specifically, we study how a large multinational company (MNC) integrates its Supply Chain Risk Management (SCRM) with its ERM system. An interview-based case study was undertaken of the manufacturing company Omikron. Based on an analysis of perceived rationalities, experts and technologies of risk management across organizational levels, we find that there are differences in risk conceptualization depending on closeness/distance to ERM and SCRM respectively.

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