Effect of Risk Management on Port and Regional Economic Performance

For countries all over the world, risk management in the maritime supply chain has become a top priority. For Korea, which is highly dependent on international supply chains, this is in fact an imperative task. However, domestic research on supply chain risks in shipping is lacking, and it is difficult to find studies that quantitatively evaluate the impact of supply chain risks. In view of this, the goal of this study is to substantiate the impact of supply chain risks on the national shipping supply chain. The study thus assesses the performance of the maritime supply chain as well as the impact of supply chain risks on supply chain performance. Additionally, supply chain performance is compared and analyzed based on the relationship between various supply chain related quality variables and risks. The results of the analysis quantitatively substantiated that supply chain risk had a negative effect on both efficiency of the maritime supply chain and container volume. In particular, it was established that when supply chain risk increases, efficiency significantly goes down even when the maritime supply chain is very good. Furthermore, controlling corruption in the supply chain had a positive effect on the container volume.