Virtual supply chain – event handling and risks management in collaborative networks

Abstract The approach of this research is to demonstrate that cooperation among business networks brings the opportunity to handle risks and events much more effectively and efficiently than an individual organization. This research has attempted to investigate the potential risks and events and to handle them effectively and efficiently. The aim of this paper is to deal with the importance of identification and management of a risk and an abnormal situation (event) within a business network that demands for higher level of attention in order to execute a business network successfully. This paper outlines the general structure of the risk and event management process and presents a collaborative methodology or framework for risk and event management in a complex non-hierarchical networked business environment. The presented processes facilitate to better understanding and management of uncertainties and risks in a business network. Empirical evidence is also highlighted based on a case example from a non-hierarchical business network. In this paper a high-level decision-making framework for managing risks and events in a business network is demonstrated with a view to ease the necessary planning process for the organizations’ managers beforehand.