Challenges in a Volatile Business Environment – Fundamentals and Case Study of Risk Management in a Manufacturing Company

Abstract

The production of goods is carried out in production networks. However, this international economic and technical interdependence is subject to numerous risks that are predominantly economic, business, and regulatory in nature, but also brings with it a wide range of technological, environmental, and financial risks.

This article describes the effects of such risks on production networks. A case study of an automotive manufacturer illustrates the risk management system for identifying, assessing, and mitigating risks. Risks arising from operations include production, technology, supply chain, and information security risks.