Proactive risk identification in cross-organizational business processes

Although the alignment of business objectives and corresponding activities in cross-organizational processes is critical in assuring performance from distinct supply chain partners and sustainability of the supply chain, to date the important question - how can this alignment be enabled - remains unresolved. We address this question by formalizing the relationship between individual and shared (dyadic) objectives of supply chain partners and between risk and performance objectives in a dyadic relationship. Further we integrate objectives and business processes at the level of a supply chain buyer-supplier dyadic relationship. In achieving this we use the design science research approach to extend the Risk-aware Value-Focused Process Engineering modeling methodology to formally represent the collaborative risk management objectives of buyers and suppliers, and associated performance creation mechanisms. We then review the merit of this extension through application of the evolved modeling methodology to the process of supply chain sourcing. Kristian Rotaru, Carla Wilkin, and Leonid Churilov