Track: Supply Chain Management

Abstract

Supply chain risk management has raised companies' and researchers' focus on the supply chain environment. The definition and consequences of risk in a company's supply chain depend on its position and the depth of analysis it can conduct. Developing Countries' companies, such as those in Albania, perceive supply chain risk management as an expenditure that does not generate profit, so they do not allocate funds or personnel to it. The recent financial crisis caused by the consequences of Covid-19 worldwide suggested that countries urgently need to implement effective risk management processes in all sectors of the economy. Companies must understand which risks should be accepted, avoided, transferred, mitigated, or exploited. This article studies a company in the Albanian Textile industry using Hierarchical Holographic Modeling (HHM). The model implemented involved assigning risk management responsibilities to a specific employee over time limit intervals. Furthermore, the company's overall risk management capabilities and competencies are enhanced as an intangible outcome. This article aims to identify strategies the company uses to mitigate risks and improve the performance of the supply chain. From the results obtained from this article, managerial perceptivity can be deduced on how to manage supply chain risk in the future.