Supply Chain Risk Governance

Governance in general relates to ‘the processes of interaction and decision-making among the actors involved in a collective problem that lead to the creation, reinforcement, or reproduction of social norms and institutions’. ¹⁰ Ghosh and Fedorowics (2008) define Supply Chain Governance as ‘a number of critical relationships [that] must be in place between sets of chain members (partners) [...] [so] decisions are made that lead to long‐term, sustainable value for an entity such as a corporation or, in this case, a formal collaboration between multiple organisations’. ^{11, p.454} In order to achieve effective SCRG, certain mechaisms for guiding organizations need to be in place. ^{11, p.454; 12, p.386}

For Governance to work, Collaboration is required so that all actors have all information. SC Governance can even be a driver of more Collaboration in SCRM. ^{12, pp.390–391} SCRG mechanisms should facilitate and encourage interorganizational SRCM and Governance improves the coordination of separate SCRM processes ^{12, p.390}