The Routledge Companion to Risk, Crisis and Security in Business

7What lurks beneath

Deep supply chain risks

Yossi Sheffi

The past decade has seen a growing awareness of the need for systematic enterprise risk management (ERM) practices. In the wake of the 2001 Enron accounting scandal in the US, the Sarbanes-Oxley Act of 2002 pushed companies to adopt more formal risk management procedures by requiring a top-down risk assessment and improved internal risk controls. ERM is becoming more standardized, too, through the efforts of groups such as COSO (Committee of Sponsoring Organizations of the Treadway Commission)¹ and ISO (International organization for Standardization).² ISO, for example, maintains a host of related standards that address specific categories of risks such as ISO 31000 (overall risk management), ...