Choosing the right supplier is a risky decision. Chose the wrong supplier, and you may face a severe disruption in your supply chain. Chose the right supplier, and all goes well. Hopefully. But is it possible to judge supply risk objectively? In the end, all risk decisions are subject to the decision maker’s perception of risk. The question is, does risk perception influence risk decisions? That is what Scott C Ellis, Raymond M Henry and Jeff Shockley try to answer in Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment. Here they operationalize and explore the relationship between three representations of supply disruption risk: magnitude of supply disruption, probability of supply disruption and overall supply disruption risk. This is an article that hits right home they way I view risk.

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