A priority decision of risk using a grey-based risk decision making approach

Because a supply chain consists of various enterprises, the sustainability of the chain should be granted, but a supply chain is being exposed to various risks. If the chain cannot respond effectively to the occurring risk, the chain could be damaged by the risk. The sustainability of an enterprise depends on effort that prevents a risk which does not occur and an effort that mitigates the impact of a risk which occurs. If a supply chain does not effectively control the preventable risks which give warning to a corporation and then the risks of the supply chain occur in practice. This paper, therefore, proposes a method which determines the priority of risks which encompass that a preventable risk which may occur and a resulting risk which occurs. The method obtains an opinion from the risk decision makers and proposes the risk priority using a grey-based risk decision making model to decrease the impact of risks in a supply chain. © 2016 SERSC.