OPM 691: Supply Risk Management

In many industries, the implementation of various efficiency- and/or responsiveness-seeking supply (chain) initiatives has created conditions for supply disruptions to become more widespread and severe. Recent examples have demonstrated that the occurrence of such events can result in substantial losses in shareholder value, sales, production, and reputation for the firms involved. This module offers an introduction to the timely topic of supply risk management. After a discussion of the key theoretical concepts (risk, disruptions, risk sources, vulnerability) (first part of the module), students are exposed to specific risk management issues in the context of supply chain and purchasing operations (second part of the module). Topics include the different types of supply risks, qualitative and quantitative methods, instruments, and frameworks for risk analysis and monitoring, as well as strategies for managing supply chains under conditions of risk.

Learning outcomes
The main intended learning outcome is a sound understanding of the key concepts and tools relevant to the management of risks in supply (chain) operations. Special emphasis is put on results from empirical research, practical tools, industry applications, and case studies that illustrate concepts and challenges. Participants will obtain:

  • knowledge of the key concepts and tools relevant to the management of risks in supply (chain) operations,
  • a sound understanding of the mechanisms that build the foundation of risk management research and practice,
  • an overview on structured approaches and tools applicable in practice.

Necessary prerequisites

Recommended prerequisites
Solid knowledge of supply chain management

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS9 SWS
ECTS credits4
Graded yes
Form of assessmentWritten exam (60 min)
Restricted admissionno
Further information
Performing lecturer
Prof. Dr. Christoph Bode
Prof. Dr. Christoph Bode
Frequency of offeringFall semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., M.Sc. Wirt. Math., MAKUWI
Preliminary course work
Program-specific Competency GoalsCG 1, CG 3
LiteratureThere is no mandatory textbook. All relevant course materials will be provided.
Auxiliary readings:
  • Holton, G. A. (2004). Defining risk. Financial Analysts Journal, 60(6), 19–25.
  • Rijpma, J. A. (1997). Complexity, tight-coupling and reliability: Connecting normal accidents theory and high reliability theory. Journal of Contingencies and Crisis Management, 5(1), 15–23.
  • Makridakis, S., Hogarth, R. M., & Gaba, A. (2010). Why forecasts fail. What to do instead. Sloan Management Review, 51(2), 83–90.
Course outlineModule 1: Supply (chain) risks –Why should we care?
Module 2: Fundamentals of risk theory and risk management
Module 3: Supply risks: Conceptual background
Module 4: Risk identification and risk assessment
Module 5: Risk handling I: Proactive
Module 6: Risk handling II: Reactive