Failure mode and effects analysis–analytic hierarchy process (FMEA-AHP) model in supplier risk management

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Date

2025

Authors

Panić, Marija
Que, Xiaojun

Journal Title

Journal ISSN

Volume Title

Publisher

Infopro Digital Services

Source

Journal of Risk Model Validation

Volume

19

Issue

3

Abstract

Risk management is a crucial process that enables organizations to identify, assess and manage risks that could potentially impact their goals and operations. This paper uses the failure mode and effects analysis–analytic hierarchy process (FMEA–AHP) risk model to identify and manage supplier risks in a mining firm. First, the FMEA approach is used to identify and evaluate the supplier’s risks and to determine the risk priority. Then the AHP is used to suggest several potential solutions for reducing the risks that identified by the FMEA, with each solution being evaluated based on several criteria. Validation of the risk model in this paper confirmed that it can help managers develop risk management plans and select the best course of action. The approach in this paper provides an enterprise risk management model that is universally applicable and adaptable, no matter the type of risk or the size or activity of the company.

Description

Keywords

supplier risk management, failure mode and effects analysis (FMEA), analytic hierarchy process (AHP), risk model, enterprise risk management (ERM)

Citation

DOI

10.21314/JRMV.2025.009

Scopus

ISSN

1753-9579
1753-9587

ISBN

License

ARR

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