What Value for Whom in Risk Management?—A Multi-value Perspective on Risk Management in an Engineering Project Supply Chain

When supply-chain risk management (SCRM) is implemented as a highly formalized, compliance-driven activity, it easily ends up disconnected from the actual value creation and value perspectives of the relevant stakeholders. SCRM is embedded in a complex stakeholder landscape, and as a consequence, the value of SCRM is perceived differently by different stakeholders. We argue that when employing a value-based approach, risk management can be tailored to specific stakeholder needs at each step in the supply chain, while maintaining coherence with the overall objectives of the supply chain. Based on a combination of case studies carried out over 1 year in engineer-to-order project environments and arguments from literature, this chapter presents a conceptual model for developing supply-chain risk management activities that are based on the value perspectives of key stakeholder groups in a customer–supplier relationship. The value perspectives collected are positioned in the stakeholder landscape and fall into two categories. One related to the outcome and one related to the process quality of risk management. The model presented in this chapter can be used recursively to model up-stream and down-stream value perspectives of stakeholders in the supply chain. It is established to facilitate a conversation with the stakeholders, elicit their value perspectives and identify alignments and misalignments in order to customize the SCRM.