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Management and risk techniques within industries have been studied from various disciplines in nondefense-affiliated industries. Given the assumption that these techniques, strategies and mitigations used in one industry apply to other similar industries, this paper examines the defense industry for risk assessment. We characterize interactions for onward application to risk identification in the defense industry.

This research employs a systems theory approach to the characterization of industry interactions, using three dimensions including environment, boundaries and relationships. It develops a framework for identifying relationship types within system-of-systems (SoS) environments by analyzing the features of interactions that occur in such environments.

The study’s findings show that different systems environments within the defense industry SoS exhibit different interaction characteristics and hence display different relationship patterns, which can indicate potential vulnerabilities.

By employing interaction as a means for evaluating potential risks, this research emphasizes the role played by relationship factors in reducing perceived risks and simultaneously increasing trust.

This paper intends to develop an initial snapshot of the relationship status of the Swedish defense industry in light of the global consolidation in this industry, which is a relevant contextual contribution.

This paper is motivated by the need to assess the risk profiles associated with the substantial number of items within military supply chains. The scale of supply chain management processes creates difficulties in both the complexity of the analysis and in performing risk assessments that are based on the manual (human analyst) assessment methods. Thus, analysts require methods that can be automated and that can incorporate on-going operational data on a regular basis.

The approach taken to address the identification of supply chain risk within an operational setting is based on aspects of multiobjective decision analysis (MODA). The approach constructs a risk and importance index for supply chain elements based on operational data. These indices are commensurate in value, leading to interpretable measures for decision-making.

Risk and importance indices were developed for the analysis of items within an example supply chain. Using the data on items, individual MODA models were formed and demonstrated using a prototype tool.

To better prepare risk mitigation strategies, analysts require the ability to identify potential sources of risk, especially in times of disruption such as natural disasters.

The future retirement of US Air Force (USAF) legacy weapon systems (WSs) removes their associated funding from within the Air Force Working Capital Fund and their parts from its organic supply chain inventory. The trending outsourcing of product support to contracted logistics support and its potential long-term consequences to the USAF government-owned, government-operated, organic supply chain and the reconstitution capabilities it enables in the USAF’s organic industrial base, suggests the need to assess its risks. Although there is an existing body of research into the risks of outsourcing the USAF’s industrial repair, and federal legislation such as Core 50/50 laws enacted to institutionalize its risk management, there is comparatively little research into the outsourcing risks to the long-term viability of the supply chain on which that repair capability is dependent. The aim of this research is to fill that research gap by assessing and modeling those risks. This research concludes by providing several future research directions that may be evaluated to provide more detail.

Leveraging a conceptual model derived from research and a multi-criteria analysis framework to assess supply chain risk. Quantifying the predicted impact of retirements on funding and inventories of unique parts. Modeling the potential risk due to WS retirement.

Results indicated long term enterprise risks to the Air Force’s supply chain correlated to the retirement of WSs and their associated funding and spare parts inventory.

This research provides an in-depth evaluation of the USAF’s supply chain to assess the holistic risk of product support outsourcing and its long-term impacts on viability by using resource-based view and contingency theory as theoretical underpinnings. In addition, insights and implications for defense supply chain managers and decision-makers.

Performance-based contracting (PBC) plays an increasingly important role in the defense industry. This paper aims to investigate factors that influence service provider’s willingness to accept PBC-induced risks. It also shows how these risks could be managed in a military service supply chain.

The case study focused on the relationship between a service provider and a customer that acted on behalf of other users in the defense sector. The contract involved the sustainment of a military engine in a complex supply chain.

The service provider’s performance attributability appeared to have a strong impact on its willingness to take PBC-induced risks. For the parts where the service provider did not have full control over the service performance, exclusions and Service Level Agreements (SLAs) were used to manage and mitigate the risks associated with uncontrolled performance. The service provider’s willingness to accept PBC-induced risks was also affected by its ability to make accurate forecasts, the applied growth path and the length of the contract.

This case has specific characteristics, unique by time (maturity of the technical system and supply chain) and place (market). It is recommended that results are tested in other research settings.

Organizations should be aware of the factors that influence a service provider’s willingness to bear PBC-induced risks. Customers should limit PBC to those parts of a contract where risks are of an acceptable level. Also, it is recommended to follow a phased growth path when it is not possible to make accurate forecasts in a PBC context.

This study is the first to address critical issues concerning the identification and management of risks under PBC in the defense industry.

Container shipping companies face various risks with different consequences that are required to be mitigated. Limited empirical research has been done on identifying and evaluating risk management strategies in shipping operations with different risk consequences. This paper aims to identify the appropriate risk mitigation strategies and evaluate the relative importance of these strategies.

Literature review and interviews were used to identify and validate the appropriate risk mitigation strategies in container shipping operations. A questionnaire with a Likert five-point scale was then conducted to rank the identified risk mitigation strategies in terms of their overall effectiveness. Top six important strategies were selected to evaluate their relative importance under three risk consequences (i.e. financial, reputation and safety and security incident related loss) through using another questionnaire with paired-comparison. Fuzzy analytic hierarchy process (AHP) was then conducted to analyse the paired-comparison questionnaire.

After conducting a systematic literature review and interviews, 18 mitigation strategies were identified. The results from the first questionnaire show that among the 18 strategies, the top three are “form alliances with other shipping companies”, “use more advanced infrastructures (hardware and software)” and “choose partners very carefully”. After conducting fuzzy AHP, the results show that shipping companies emphasize more on reducing the risk consequence of financial loss; and “form alliance with other shipping companies” is the most important risk mitigation strategy.

This paper evaluates the risk mitigation strategies against three risk consequences. Managers can benefit from the systematic identification of mitigation strategies, which shipping companies can consider for adoption to reduce the operational risk impact.

At the substantive level, there exists a gap in knowledge about the position of security risk management (i.e. SRM) during the terminals’ operations and management; particularly when there is potential for deliberate anti-security acts. Correspondingly, the purpose of this paper is a need for more practical research to find out the justification for the existence of the SRM and different techniques for its appropriate execution on these logistics infrastructures principally with due regard to the potential requirements in the near future.

Both qualitative and quantitative techniques are used in this study incorporating fuzzy set theory and risk assessment matrix to achieve the research objective.

A designed SRM framework tailored for Qalhat liquefied petroleum gas (LNG) terminal in Sultanate of Oman was established to manage the security threats which can be resulted from any probable terrorist attacks.

The limited numbers of experts for the purpose of the addressed SRM are causing challenges in data collection.

The pressures for enhanced attention to critical infrastructure security have fostered new challenges for petrochemical seaports and terminals (PSTs). These tendencies dictate to maintain comprehensive security regimens that can be integrated with national and international strategies to support the country’s security against terrorism.

The development of the security risk factor table model in the case of Qalhat LNG Terminal.

This study aims to explore and analyzes the risk factors in container shipping and logistics services using a dual perspective. The authors gather data not only from logistics service companies but also from their most important customers.

In this research, the authors used case study methodology (interviews and surveys) to examine risk factors that are related to one another within the interaction between logistics service companies and their customers in the emerging markets of the Mediterranean region (Turkey, Algeria, Tunisia and Libya).

The findings show the most important risk factors and compare them using a dual perspective. Customers identify additional risks and estimate their consequences as wider. Interestingly, oil price change plays a dual role because a price increase could be beneficial to the region; at the same time, however, the competitiveness of shipping would decrease. In both response groups, risk likelihood and risk consequence have a positive and statistically significant correlation.

The findings of the study are limited to one shipping/logistics service company. On a global scale, the company is medium-sized; however, in terms of Northern Europe, it is an important player. Extending its service portfolio to the Mediterranean region is an important step.

In emerging markets, risks go hand in hand with profitability, and companies need to apply extensive risk analysis and mitigation strategies to survive.

The southern Mediterranean region is showing some signs of economy recovery. Efficient, robust supply chains are in demand to support sustainable growth.

Using a case study approach in supply chain risk management in shipping is rather rare; this work is ground-breaking in that it uses dual perspective in the analysis.

This paper aims to propose a technique based on cognitive assessments to quantify identified operational risks from the perspective of container shipping or logistics system administrators. The results derived from the risk quantification could be used to prioritize risks as well as support the decision-making process in risk prevention and mitigation.

This paper identified container shipping operational risks (CSORs) from a logistics perspective. A multivariate risk evaluation mechanism by fuzzy rules Bayesian network (FRBN) was established. An improved two-level parameter set based on the failure mode and effects analysis (FMEA) was used to support the input extraction process. By feeding cognitive assessments into the model, the identified risks are evaluated based on their utility values. An illustration example and a sensitivity analysis were carried out to justify and validate the proposed model.

The highest positions in the prioritized list of CSORs in the case study are dominated by risks in the physical flow with the first three are piracy and terrorism, force majeure and port congestion. The results derived from the case study with the satisfaction of all pre-defined axioms proved the feasibility and illustrated the functionality of the proposed risk assessment and prioritization technique.

Controlling risk is irrefutably a significant issue of container shipping and logistics management because of the inconsistency of risk definitions and the involvement of uncertainties. The proposed risk evaluation mechanism and the identified list of CSORs could be beneficial in system management, decision-making and reliability performance.

Container shipping is a crucial component of the global supply chain that is affected by a large range of operational risks with high uncertainty, threatening the stability of service, manufacture, distribution and profitability of involved parties. However, quantitative risk analysis (QRA) of container shipping operational risk (CSOR) is being obstructed by the lack of a well-established theoretical structure to guide deeper research efforts. This paper proposes a methodological framework to strengthen the quality and reliability of CSOR analysis (CSORA).

Focusing on addressing uncertainties, the framework establishes a solid, overarching and updated basis for quantitative CSORA. The framework consists of clearly defined elements and processes, including knowledge establishing, information gathering, aggregating multiple sources of data (social/deliberative and mathematical/statistical), calculating risk and uncertainty level and presenting and interpreting quantified results. The framework is applied in a case study of three container shipping companies in Vietnam.

Various methodological contributions were rendered regarding CSOR characteristics, settings of analysis models, handling of uncertainties and result interpretation. The empirical study also generated valuable managerial implications regarding CSOR management policies.

This paper fills the gap of an updated framework for CSORA considering the recent advancements of container shipping operations and risk management. The framework can be used by both practitioners as a tool for CSORA and scholars as a test bench to facilitate the comparison and development of QRA models.

According to the Department of Commerce, start-up, small, and family businesses are among the fastest growing areas of employment. Even under the best economic environment, starting a business is risky. To reduce the risks and to establish their own businesses, an increasing number of entrepreneurs and corporate converts are buying franchises.

Franchising has enjoyed a major increase in popularity during the early 1990s, fueled largely by the growing pool of available candidates made possible by significant corporate and government downsizing. According to the Department of Commerce, franchising accounts for nearly one-third of all U.S. retail sales and employs over 7 million people.

If an individual has the motivation, skills, capital, leadership, entrepreneurial spirit, and risk-taking attributes required to start and manage a business, franchising provides a structured alternative to accomplish this objective. Franchising encompasses both high risks and high rewards. While it is not for everyone, franchising represents a method to start and/or transition into your own business.

This refereed article describes the why, what, and how of franchising. It discusses the driving forces for franchising from both the franchiser's and franchisee's perspective, what it takes to be a franchisee, how to become an educated businessperson, what to do once you have selected a franchise, the do's and don'ts, the risks and rewards, and how to sell a franchise.