A model to evaluate upstream vulnerability

Abstract

The current body of literature with regard to supply chain vulnerability pays limited attention to how companies actually evaluate and manage risk. A second limitation is the scarce use of empirical evidence. Aiming at reducing these gaps, this work proposes a new conceptual model by which companies can assess their upstream vulnerability. The development process for the model involved two steps. First, based on a literature review, a draft of the assessment model was designed and operationalised via a questionnaire. Then, to refine the model and to verify its discriminant ability, case studies were conducted. The model is able to effectively compare the riskiness of the context in which a company operates with the firm's preparedness in risk management, providing guidance in evaluating and reducing upstream vulnerability.

Keywords:

• vulnerability
• supply risk
• risk assessment
• supply chain risk management