Early Warning System Potential for Single Sourcing Risk Mitigation

Part 17: Risk Analysis

International audience

Network governance is described as a framework of policies and business rules, which is applied to manage an extended organization. Nowadays, one of its main concerns is risk management (RM) and the operational risk mitigation is crucial to avoid disruptions, delays and quality fades. Single sourcing can be interesting to reduce economic costs enabling the product design but at the same time can synergize the above-mentioned risks. Traditional RM approach for sourcing risks is based on selecting reliable partners, sharing knowledge and creating standard procedures that need to be complied. But the development of sensing networks based on early-warning systems (EWS) based on performance metrics to support decisions will be a promising alternative.